In regulating the water sector, the Commission shall develop regulatory tools which include:

1. Tariff Policy

2. Licenses

3. Guidelines- information gathering, auditing of service providers, Licensee reporting, pro poor component of PPP Contracts and bidding procedures, licensing procedures, reporting guidelines, Corporate Governance, complaints mechanism, dispute resolution/arbitration procedure, consultation process, process for making determinations and conducting inquiries, feedback strategy, etc.

4. Incentives- improvement of sector performance and efficiency

5. Regulations (Standards, Codes, Manuals, conditions of service, Service levels, etc )

6. Determinations and Orders

7. Publications on Sector Status and benchmarking

8. Consultation (and Procedures)

9. Arbitration and conciliation mechanism (existing State structure)

10. Research and Development (appropriate & affordable technology, etc)

11. Market reports and Anti-trust activities

12. Inquiries and investigation

13. Model Agreements

BENEFITS OF REGULATION

BENEFITS TO CONSUMERS

1. Improved Water Supply & Sanitation services for consumers

2. Improved access for the poor/better living conditions

3. Improved service standards (Quality, reliability, pressure, access)

4. Transparent pricing regime

5. Predictability of Service

6. Accountability

7. Dispute resolution and improved complaints and response mechanism

BENEFITS TO SERVICE PROVIDERS/INVESTORS

1. Increased investment efficiency and returns.

2. Improved O & M efficiency, sustainability and cost recovery.

3. Increased investment potential due to reduced sector risk perception and certainty of operating rules, increase in capital mobilisation,

4. Clear rules and regulations leading to better risk management.

5. Access to R & D and Technology Advances.

BENEFITS TO GOVERNMENT:

1. Improved sector HR capacity.

2. Development of commercial & competitive service providers, technological innovation, research.

3. Conservation of resources.

4. Increased sector information and data for Planning and Policies.