The network efficiency rate: a key performance indicator for water services asset management?

Numéro: 2014-1

Maria Salvetti – The network efficiency rate: a key performance indicator for water services asset management?

Abstract: In France, good governance of public water and sanitation services revolves around the definition and monitoring of performance indicators designed as steering tools and targeting results. Among the 29 statutory performance indicators, the network efficiency rate plays a key role in water services asset management.

Indeed if water services fail to comply with a specific efficiency rate by 2015, they may face a 100% increase in the intake fees paid to the French water agencies. Using data from the French national observatory on water services, the actual situation of French water services with regard to the leakage regulation was assessed. Several results were drawn. Firstly, the use of the efficiency rate as a tool to assess the overall asset management quality of services seems to be relevant as services not complying with any regulatory threshold show the poorest level of asset knowledge and management index in the whole working sample. On the contrary, water services complying with the 85% regulatory efficiency rate have the highest level of asset knowledge and management index and the highest network renewal rate in the whole working sample. Lastly, services complying with the French leakage regulation show a higher water price than the ones failing to match the regulation. Implementing an asset management policy is costly as it induces higher maintenance and investments costs which increase the price of water.

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Chaire EPPP

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