I. Jurgelane


In this paper, the author studies water supply tariffs setting schemes, the structure of the tariffs, and other issues related to this process.   The target was set to study water supply tariffs regulation principles both in Latvia and in the European Union aiming to set forward solutions for optimisation of  tariff-setting processes.

The following tasks were set forward for reaching the target:

1. studying theoretical aspects of public utilities regulation and the setting of tariffs,

2. evaluation of tariffs structure in Latvia and Lithuania,

3. finding out and analysing the principal factors of tariffs increase,

4. ellaboration  of a new solution for the optimisation of the tariffs setting process.

Scientific research methods and materials:

1) scientific deduction method when analysing theory on the issue studied;

2) scientific induction method when summarising study research results, evaluations, conclusions, suggestions;

3) dynamic time series analyses aiming at finding out development progress and rate of processes, facts and costs;

4) graphical method when visualising data surveyed and executed;

5) data grouping and dynamic analyses method has been applied for the analyses of the statistical data;

6) evaluation of computer programmes to select the most appropriate for reaching the target set.

This research paper consists of an introduction, four interrelated chapters, conclusions and proposals. The first part of the paper describes the specificity of monopoly market and the necessity of regulation of public services. In the second part of the paper the Author analysis the regulation of public utilities in water management in Latvia and Lithuania, the structure of water supply tariffs is being compared and analysed. In the third chapter the process of determining water management tariffs is being researched, in the fourth chapter – problems related to the regulation of water management tariffs have been identified. The Author mentions implementing the ESF projects as one of the reasons for tariff increase. Their impact on tariffs the Author will evaluate in her future research. Another problem that has been identified is the complicated revision and analysis process of tariff, which is rather long and demands both human and time resources. To solve the problem the Author proposes to introduce a new innovative method – the visualisation of geo-information that would allow to compare similar enterprises – public utilities providers (on similar criteria) making the process of tariff evaluation faster.

Scientific research and publications by Latvian and foreign scholars, data by the Ministry of Environmental Protection and Regional Developmentof the Republic of Latvia, information by tariffs regulatory institutions in Latvia, Estonia, Lithuania, theoretical and analytical literature as well as other information sources listed under the List of Literature  have been used for the research.

As a result of the study the Author suggests to use the software of geographic information system for the optimization of water tariffs comparison, evaluation and setting processes that would enable for visualisation option.


DOI: http://dx.doi.org/10.5755/j01.eis.0.7.3726


Regulation; tariffs; monopoly; water utilities; geographic information systems

Full Text: PDF

Print ISSN: 1822-8402
Online ISSN: 2335-8831