Drinking water supply, sewerage, and wastewater treatment

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Chile is one of the countries around the world which pioneered the reform of their water utility sector up to modern operation principles. INECON was actively engaged in the process, including the development and implementation of the regulatory framework laid down at the time. This valuable experience has been useful in providing advice to government agencies, utilities, and other stakeholder entities around Latin America in countries pursuing similar reform initiatives.

Among the highlights in INECON’s track record of over 30 years in the sector is its participation in the numerous tariff reviews that have taken place in Chile, where we have provided support to either the regulator or regulated companies―whether privately- or state-owned. Most notably in this context, INECON has usually been involved in the more complex rate cases, typically those for the larger utilities. Besides, we have undertaken numerous assignments aimed to design, apply or strengthen the State’s regulatory duties on the industry. Likewise, we have been commissioned to develop schemes for private sector participation in the provision of these services. In addition, INECON provides advisory services on diverse matters concerning planning and management for water and wastewater utilities.

We have made all this experience available to both private- and public-sector clients in other countries in Latin America as we have undertaken diverse projects aimed to address issues and problematics such as the foregoing, or particular requirements like the formulation of subsidy schemes for consumption of water and sewerage services by lower-income users.

Our experience of the sector includes:

  • Tariff calculation studies.
  • Efficient cost studies concerning capex and opex by regulated utilities.
  • Studies aimed to revise the regulation in order to make it more fit for purpose or stronger.
  • Studies into and formulation of subsidy policies and schemes.
  • Specialist advice on improvement of specific aspects in water utility business management, both for state-owned and privately-owned companies.
  • Review of and assistance in the development of capital investment plans.
  • Demand forecasting.
  • Due diligence proceedings and financial evaluation of water utility companies and concession projects.
  • Strategic advice to water utility companies undergoing rate reviews or public-sector agencies on rate cases.
  • Expert opinion reports used in conflict resolution in cases of disagreements between the Authority and companies.