Regulation of water and sewage corporations: Impact on prices and services

Regulatory changes have taken place in the urban water and sewage sector in Israel over the years. In 2001, the Water and Sewage Corporations Law was enacted. The municipal departments that dealt with the water and sewage issues until then were shut down and over the years, 56 water and sewage corporations were established. At the same time, the regulation of the water sector in Israel has also changed and is the responsibility of the State Water and Sewage Authority established in 2007. The Authority coordinates both administrative and regulatory measures, and is in charge of managing, operating, developing, and regulating the activities of all the water corporations that have been established throughout the country. In this article, we examine the structure of regulation, the functions of the regulator, and especially the effect of regulation on the quality of services provided to the consumers of the water and sewage corporations.