The regulation of water services shares many similarities with that of other utilities such as electricity or telecommunications. As a result, similar methods are often used by regulators to assess the efficiency of companies in those sectors. Data Envelopment Analysis (DEA) is one of those widely applied methods. This paper aims to determine the adequacy of DEA as a regulatory tool for urban water services, with a special focus on the quality of the available data. In order to obtain useful conclusions, two DEA simulations were performed with audited data from 194 water utilities, officially made available by the Portuguese water regulatory authority (ERSAR). Both simulations will demonstrate that the inherent inaccuracies found in some of the key data provided by water utilities represent a significant obstacle to obtain meaningful results with the DEA technique. This could represent a paradigm shift for some of the regulatory authorities currently using DEA or similar techniques, as the complexity of the method does not seem to be justified by a better analysis of the comparative performance of the different services.

Frontier efficiency methods have been recurrently used in the water sector to assess the performance of water utilities. These methods are also used for yardstick regulation, with greater efficiency being sought by creating competition between the utilities, which can have an impact on decision-making processes, such as tariff setting. This study analyzes the adequacy and limitations of these methods for regulatory purposes, particularly how they deal with data uncertainty and their capacity to manage large number of variables. In order to achieve this, two representative methods—a nonparametric technique (data envelopment analysis) and an econometric one (stochastic frontier analysis)—are applied to an audited sample of 194 water utilities. Results will show that the results from the methods may not be considered conclusive in the water sector and their application should be carried out with considerable reservations.

Defining complementary tools to the IVI. The Infrastructure Degradation Index (IDI) and the Infrastructure Histogram (HI) The Infrastructure Value Index (IVI) is quickly becoming a standard as a valuable tool to quickly assess the state of urban water infrastructure. However, its simple nature (as a single metric) can mask some valuable information and lead to erroneous conclusions. This paper introduces two complementary tools to IVI: The Infrastructure Degradation Index (IDI) and the Infrastructure Histogram (HI). The IDI is focused on time (compared to the IVI, focused on value), represents an intuitive concept and behaves in a linear way. The joint analysis of IVI and IDI provides results in a more complete understanding of the state of the assets, while maintaining the simplicity of the tools. The Infrastructure Histogram allows for a full evaluation of the infrastructure state and provides a detailed picture of network age compared to its expected life, as well as an order of magnitude of the required investments in the following years.

The online training of students in the field of hydraulic engineering entails the need to undertake periodic self-evaluations to ensure their understanding of the topics developed.

A significant amount of energy is required to operate pressurised water distribution systems, and therefore, improving their efficiency is crucial. Traditionally, more emphasis has been placed on operational losses (pumping inefficiencies, excess leakage or friction in pipes) than on structural (or topographic) losses, which arise because of the irregular (unchangeable) terrain on which the system is located and the network's layout. Hence, modifying the network to adopt an ecologically friendly layout is the only way to reduce structural losses. With the aim of improving the management of water distribution systems and optimising their energy use, this work audits and classifies water networks' structural losses (derived from topographic energy), which constitutes the main novelty of this paper. Energy can be recovered with PATs (pumps as turbines) or removed through PRVs (pressure reducing valves). The proposed hydraulic analysis clarifies how that energy is used and identifies the most suitable strategy for improving efficiency as locating the most suitable place to install PRVs or PATs. Two examples are discussed to illustrate the relevance of this analysis.