IMPLEMENTING REGULATORY IMPACT ASSESSMENT AT PERU 'S NATIONAL SUPERINTENDENCE OF SANITATION SERVICES.

Foreword Acknowledgements Table of contents Abbreviations and acronyms Executive summary 1 Context of regulatory impact assessment RIA within the context of regulatory governance RIA at OECD countries OECD Principles: RIA Best Practices References 2 RIA system at Sunass Context Sunass main regulations Tariffs regulation Service quality Oversight and inspection Elements of the RIA system of Sunass Example: potential high-impact regulatory amendment Notes References 3 Implementing RIA at Sunass Elements of implementation Element 1. Design and implementation of the legal framework of the RIA Element 2. Approval of the material necessary for preparing RIA Element 3. Staff training Element 4. Design and development of technological tools necessary to make the RIA process more efficient Element 5. Development of RIA Element 6. Information and socialisation campaign with stakeholders and other instances of the Peruvian government. Preparation and oversight process of RIA at Sunass Identification of a regulatory need Preparation of RIA Note Reference 4 Guidelines for Performing RIA Element 1. Public consultation and stakeholder participation Early public consultation process Public consultation during the preparation process of the regulation Public consultation elements I. Preparation stage of the public consultation 1. To define the objective 2. Selection of stakeholders 3. Selection of methods and tools II. Execution stage of the consultation. 4. Communication and diffusion plan of the public consultation 5. Deadline and treatment of the comments received 6. Preparation of the matrix of comments III. Assessment stage of the consultation. 7. Assessment process of the comments received 8. Assessment of the public consultation process 9. Final report Element 2: Problem definition Delimitation Causes and effects Expected magnitude Example: Problem tree prepared by Sunass for the assessment of the situation in rural areas Element 3: Regulation objective Example: Provision for specific water and sewage infrastructure projects in England; project developed by Ofwat Public policy objective Element 4: Identification of alternatives Example: Provision for specific water and sewage infrastructure projects in england; project developed by Ofwat Option 1 - Service Provider Companies (SPC) keep financing and deliver all the water and sewage infrastructure projects under the existing legislative regime. Option 2 – To carry out a new legislation applicable for all SPC allowing the creation of independent and directly regulated IPs, financing and supplying large or complex infrastructure projects. Option 3 – Modify the operating license of a single EPS to create a separate IP to finance and implement a particular large project (for instance, the Thames Tideway Tunnel) on behalf of the service provider company Element 5: Impact evaluation Identification of costs and benefits Direct costs of regulation Direct compliance costs Irritation costs Government implementation costs Indirect costs of regulation Indirect compliance costs Other indirect costs Regulation benefits Cost-benefit analysis Alternate methodologies for estimating the impact Cost-effectiveness analysis Multi-criteria decision analysis Summary of methodologies Example: Option 1 Make new regulations applicable to all SPC that allow the creation of independent and directly regulated IPs that finance and supply large or complex infrastructure projects. Costs Benefits Option 2. Modify the operation license of a sole SPC to create a separate IP financing and performing a large regulatory project (for instance, the Thames Tideway Tunnel) on behalf of the SPC. Costs Benefits Element 6: Regulation compliance Element 7: Monitoring and assessment strategy Monitoring Assessment References 5 International case studies Case Study 1: National Water Commission, Mexico Organisational structure and main functions Regulatory impact assessment system in Mexico Regulatory impact assessment Public consultation in Mexico Experience in Mexico on RIA in autonomous bodies CONAGUA’s experience on the elaboration of regulatory impact assessment Case Study 2: Regulatory Authority of Water Services, United Kingdom Regulatory context Regulatory policy in the United Kingdom RIA system RIA obligations RIA supervision Content of RIA Sections included in the RIA Public consultation RIA administration Example of the RIA Notes References 6 Peruvian case studies Cross-sectional elements of RIA in Peru Legal framework for the regulatory production of the executive branch Progress in the implementation of the RIA in the executive branch PCM role in the RIA implementation process RIA design for the executive branch Practices consistent with RIA: regulatory quality analysis RIA in executive branch bodies Case study 1: Ministry of Economy and Finance Context Legal framework for performing the regulatory impact assessment in the MEF RIA implementation in the MEF Preparation process RIA training for MEF staff RIAs developed by MEF RIA elements Problem definition Policy objectives definition Alternatives to regulation Analysis of the available alternatives Regulation compliance Monitoring and assessment mechanisms Public consultation Legality analysis Examples of RIA and its consultation process RIA elements Consultation process of the RIA Other relevant practices on regulatory policy Implementation of a RIA pilot program Case study 2: Ositran Context Legal framework for performing the RIA in Ositran RIA regulation in Ositran Framework for public consultation RIA implementation in Ositran RIA preparation process Training on RIAs for Ositran’s personnel RIAs developed by Ositran RIA elements in Ositran Problem definition Policy objectives definition Alternatives to regulation Legality analysis Impact assessment: cost-benefit analysis Regulation compliance Monitoring and assessment mechanisms Public consultation Examples of RIA and Its Consultation Process RIA elements RIA consultation process Other relevant practices in the regulatory policy Ex post assessments Accountability Case study 3: Osinergmin Context Legal framework for performing RIA in Osinergmin RIA regulation at Osinergmin Framework for public consultation RIA implementation in Osinergmin Preparation process RIA training for Osinergmin staff RIAs developed by Osinergmin RIA elements in Osingermin Problem definition Policy objectives definition Alternatives to the regulation Impact assessment: cost-benefit analysis Comparison of alternatives Regulation compliance Monitoring and assessment mechanisms Public consultation Examples of RIA and Its consultation process RIA elements RIA consultation process Mini RIA elements Mini RIA consultation process Other relevant regulatory policy practices Ex post assessments Case study 4: Osiptel Context Legal framework to perform the RIA in Osinergmin RIA regulations at Osinergmin Framework for public consultation RIA implementation in Osinergmin Preparation process RIA training for Osiptel staff RIA developed by Osiptel RIA elements in Osiptel Problem definition Policy objectives definition Alternatives to regulation Impact assessment: cost-benefit analysis Regulation compliance and monitoring and assessments mechanisms Public consultation Examples of RIA and Its consultation process RIA elements RIA consultation process RIA elements RIA consultation process Other relevant practices in regulatory policy Ex post assessment Notes References