inst/business_model_cat.md

In swd-turner/cwsdb: The Global Urban Water Supply Database

Explanation of business model categories

Business models

gluwasp uses seven categories to define business models of water supply: gvt_utility, delegated_man, municial_brd, coop, corp_utility, pub_corp, and private_utility. The purpose of this document is to explain what each of these categories means. Terminology and definitions are taken from source Bakker2002.

Government utility (gvt_utility)

Asset ownership: Municipal or regional government

Asset operation: Municipal or regional administration

The utility is owned and operated by a municipal government, or a group of municipal governments. The municipal government (usually a specific government department) is responsible for operating and maintaining assets, as well as for planning and investing in new assets. Revenues are generated through property tax or user fees, with rates set by the municipal government, often based on recommendations of national regulatory agency. The government utility model predominates in the industrialized countries.

Delegated management (delegated_man)

Asset ownership: Municipal or regional government

Asset operation: Separate delegated enetities

The utility is owned by the municipal or regional government, but various core parts of the operation are contracted out to separate entities, including private companies. Delegated parts of the operation may include construction, operation, maintainance, and customer service functions. This is done through a combination of service contracts (1-2 yrs), build-own-operate contracts, lease agreements and concessions. (See Mexico City / Buenon Aires).

Municipal board or commission (municial_brd)

Asset ownership: Municipal or regional government

Asset operation: Commission or board

The utility is owned by the government, but operated by a separate legal entity, often termed a Public Utility Commission or a Municipal Board. Board members are elected by Government. These boards are typically given a ring-fenced budget, and must raise some of its revenues through user fees. The municipal board model is widespread in the United States.

Cooperative (coop)

Asset ownership: Users

Asset operation: Delagated authority

Utility is owned by the water users with operations run by a delagated authority. More appropriate for rural areas, very few large cities have adopted this model.

Corporatized utility (corp_utility)

Asset ownership: Municipal or regional government

Asset operation: PLC (permanent concessionaire)

The utility is a private company with the main shareholder being the municipal or regional government, which places . This set up is may be considered special similar of delegated management in which the utility is essentially a permanent concessionaire. The utility is also subject to corporate law rather than public law. The utility may be for-profit or not-for-profit.

Publicly owned corporation (pub_corp)

Asset ownership: Municipal or regional government

Asset operation: State owned enterprise

Also known as: state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, crown corporation, government-owned corporation, government-sponsored enterprises, commercial government agency, state-privatised industry public sector undertaking, local public enterprise, or parastatal. These enterprises are owned solely by the Government, but have autonomy on day-to-day operations. They also tend to have financial autonomy.

Private utility (private_utility)

Asset ownership: Private company

Asset operation: Private company

Asset ownership and operating duties and is transferred to a private company in privatization. The company then operates in a highly regulated environment as a monopoly provider. England and Wales is the only case where this approach has been adopted.

swd-turner/cwsdb documentation built on May 27, 2019, 7:45 a.m.