POSITION PAPER

ON

PUBLIC UTILITIES Electricity, Water & Sewerage

JOINTLYBY

FOMCA NCCC FORUM AIR

DATE: 15/11/2010

TO

PEMUDAH TASK FORCE

1. Electricity

The energy required to support our economies and lifestyles provides tremendous convenience and benefits. But

it also exacts enormous costs on human health, ecosystems, and even security. Energy consumption affects

everything from a nation’s foreign debt to the stability of the Middle East, from the air we breathe to the water we

drink,

The energy intensity—that is, the energy input per dollar of output—of the global economy is declining, and

recent decades have seen continuing improvements in energy efficiency. Yet these encouraging developments

are being offset by an ever-increasing level of consumption worldwide. Between 1850 and 1970, the number of

people living on Earth more than tripled—yet the energy they consumed rose 12-fold. By 2002, human numbers

had grown another 68 percent and fossil fuel consumption was up another 73 percent.

Energy consumption is rising fastest in the developing world, where petroleum use alone has quadrupled since

1970. China is already the world’s number one coal consumer and the third largest oil user, while Brazil is the

sixth largest oil consumer. Current trends in global energy use simply cannot be sustained: if the average

Chinese consumer used as much oil as the average American uses, China would require 90 million barrels per

day—11 million more than the entire world produced each day in 2001.

Through taxes and subsidies, regulations and standards, and investments in infrastructure, governments

influence how, where, how much, and what form of energy we use.

But we as consumers are not powerless bystanders. Ultimately, it is consumers who choose what to buy and

how to use it, and thus it is consumers who can drive change.

Traditionally, energy production in Malaysia has been based around oil and natural gas. Malaysia currently has

13GW of electrical generation capacity.

Power generation capacity connected to the Malaysian National Grid is 19,023 MW, with a maximum demand of

13,340 MW as of July 2007 according to Suruhanjaya Tenaga. Total electricity generation for 2007 is 108,539

GW·h with a total consumption of 97,113 GW·h or 3,570 kW·h per capita.

The generation fuel mix is 62.6% gas, 20.9% coal, 9.5% hydro and 7% from other forms of fuel. In 2007, the

country as a whole consumes 514 thousand barrels (23.6 million tonnes) of oil daily against a production of 755

thousand barrels (34.2 million tonnes) per day.

However, Malaysia only has 33 years of natural gas reserves, and 19 years of oil reserves, whilst the demand for

energy is increasing. Due to this the Malaysian government is expanding into renewable energy sources.

Currently 16% of Malaysian electricity generation is hydroelectric, the remaining 84% being thermal. The energy

sector as a whole is regulated by Suruhanjaya Tenaga, who governs the energy in the peninsula and Sabah,

under the terms of the Energy Commission Act of 2001.

Peninsular Malaysia Historical Electricity Production and Consumption Data

Year

Production Capacity (megawatts) Maximum Demand (megawatts)

TNB Production Capacity

IPP Production Capacity

Total Production Capacity

2005 6346 11277 17623 12493

2006 6346 11977 18323 12990

2007 6346 13377 19723 13620

2008 6436 13377 19723 14007

2009 7040 14777 21817 14245

Source: Suruhanjaya Tenaga Annual Report

Current state of electricity services to consumers (TNB services) – based on complaints received by the

National Consumers Complaints Centre

There were 949 complaints in 2009, compared to 926 in 2008. Consumers complaints reflect their

disappointment with the service they have received over the years. Tenaga Nasional Berhad as the sole supplier

of electricity to households is expected to have a suitable customer service and a professional complaints

handling system.

2.0 CONSUMER ISSUES

2.1 Faulty meters

Wrong meter reading due to defective or faulty meters has caused problems to consumers, especially when they

are charged rates above their previous monthly bills. Higher charges also result when meters are replaced.

When such complaints from consumers are not resolved, power is cut to their premises. This results in hardship

to these households and they have to pay reconnection fees. Consumers are unhappy that their complaints are

not investigated properly

2.3 Billing disputes

Billing disputes is another area of complaint. Service providers sometimes provide estimated billing charges

when meters cannot be accessed. Subsequent readings result in consumers paying what they see as more than

their normal bills. There should be a proper system for the service provider to explain to consumers how and why

the higher bill has resulted.

2.4 Power disruptions

Power outages and power surges are quite common in this country. This issue has been there for a long time. It

will help where if consumers can be advised of this in advance. Where notices are given earlier, consumers can

at least prepare themselves for the power cut. Recent complaints statistics show an increase in consumer

complaints on frequent power disruptions. Power surges which damage electrical equipment should be

investigated thoroughly by the service provider and compensation paid for the loss suffered if indeed it is found

to be true.

2.5 Meter tampering

Meter tampering has been highlighted before and it remains an area of concern in 2009 as well, with consumers

complaining of excessive charges despite their electricity usage being less. The service provider should

investigate if there has been any meter tampering and the possible source of such tampering. Under Section

37(3) of the Electricity Supply Act 1990 it is an offence if anyone alters or prevents any meter from producing

actual output of electricity consumption. Anyone found guilty from the offence stated as above can be fined not

exceeding RM 100,000 or to an imprisonment for not more than three years or both.

3.0 RECOMMENDATIONS

3.1 Tenaga Nasional Berhad as the sole provider of electricity must establish a professional and fair complaints

handling system to handle consumer complaints. It should establish a consumer complaints tribunal to refer

consumer disputes which cannot be resolved between them

3.2 Electricity meters should be calibrated regularly to ensure correct readings. Meter readers should be trained

to handle consumers queries and questions. There should be a hotline for consumers to seek clarification.

3.3 The Ministry concerned should also consider a review of the law so that the provision on penalties can be

addressed to improve the level of service to the public.

Current Issues

Climate change

Energy service providers and government agencies must contribute and engage aggressively towards climate

change mitigation and adaptation initiatives. Considering that there has not been a Malaysian country report on

assessing impact of climate change to utilities sector, it becomes very important that both energy resources and

infrastructure for generation and distribution consider impact of climate change.

We anticipate power disruptions to key utilities infrastructure during flash floods, namely to water treatment and

sewerage plants. Other essential services which have the potential to face power disruptions are healthcare

and public transportation systems.

The energy mix should have increased contribution by renewable energy and increased emphasis on energy

efficiency.

Power generation must consider impact on severe weather on the facilities and distribution of energy.

Corporate universities (UNITEN, Universiti Petronas etc) should develop local skills and knowledge and

technology to support green and renewable energy production and services.

Energy Charter

1. Access

· The ministry and the utilities service providers must ensure mechanisms to reach the goal of universal

access to utilities services regardless of political boundaries and state of development, following the

principles of affordability and sustainability to all consumers in Malaysia.

· Utilities service continuity is a vital part of access and consumers should have the right to regular service

availability without arbitrary disconnection or interruption. Consumers have the right to know reasons behind

disruptions and lack of access and actions taken to address disruptions and lack of access. Actions taken to

address lack of access and disruptions must be carried out through transparent and ethical stakeholder

engagement process.

2. Sustainability

ST and all utilities service providers and financial institutions must work together, to:

· reduce wasteful energy production and consumption patterns and promote the supply of sustainable energy,

water - such promotion should include energy efficiency information, water conservation initiatives, such as

informative labelling, to help consumers make more informed choices in purchasing energy and energy

using appliances. Labeling on water consumption of household appliances also help consumers make

informed choices about their purchases.

· promote investment in renewable sources of energy and sustainable energy technology, including through

the provision of loan facilities and micro-credit schemes

· Support sustainable energy technology through public procurement and a supportive legislative framework.

· reduce the use of traditional non-renewable sources of energy such as hydro-carbons and promote

sustainable alternatives

· Provide incentives to consumers and manufacturers to improve their energy efficiency, including

conservation/insulation measures which can reduce bills and/or improve comfort levels. Incentives

applications by industry and consumers must be user friendly and easy to understand and aggressively

promoted.

The government agencies and the service providers must:

· work towards and implement mandatory targets for major, sustainable reductions in greenhouse gas

emissions

· publish reports detailing the monitoring and auditing of compliance with targets - annual reports should cover

energy production and consumption profiles

· The government agencies and energy service providers must facilitate or enable consumers to:

o play their part in reducing wasteful energy consumption patterns by making information from

manufacturers, service providers and governments readily available

o set achievable domestic household targets; carbon reductions schemes must enable domestic

consumers to participate while adopting measures to protect those on low incomes

o contribute to system sustainability by paying their bills.

3. Choice and flexibility

· Many communities require a range of energy types. Alternative, renewable and varied sources of

energy provision must be encouraged.

· Access by producers and service providers to the electricity and gas grids, including those under

development, must be equitable

· Off-grid production must not be prevented by statutory or contractual monopolies.

· Choice of convenient payment methods should be made available to all consumers.

4. Fairness

· The principle of equitable distribution of service must apply, regardless of social category or geography.

· If the existing networks are subject to cuts in supply, such cuts must be managed in an equitable

manner, avoiding discrimination against poor districts, and informing consumers in advance about

expected interruptions.

· Tariff setting needs to take into account factors such as the population’s capacity to pay, costs of

production, historic prices and rate of return on capital (regardless of public or private). Consumers

should be protected against unmitigated market forces in the setting of tariffs.

· The allowed cost of capital should be restricted to a ‘fair’ return, balancing the need for investment with

the protection of consumers against undue profits.

· Levels of payment of bills by consumers must be improved and/or maintained at high levels so that all

contribute, including public bodies.

· Where subsidies are necessary to ensure access, they should be designed to benefit the non-served

and under-served consumers first and foremost.

5. Customer care and support

· Low cost procedures for connection must be developed, such as connection fees payable over a period

following initial connection.

· Protect consumers against arbitrary disconnection and should inform them of all tariffs and charges,

which should not be subject to arbitrary variation.

· Disconnection for non-payment must only be carried out as a last resort after consumers have been

given every opportunity to pay and all reasonable efforts have been made to negotiate payment plans;

all possible avenues for financial assistance, should have been explored before such a serious measure

as disconnection is undertaken.

· Billing must be accurate and verifiable by independent assessors in the event of disputes.

· There must be simple and rapid systems for reporting and rectifying faults, such as service

interruptions, queries on siting on infrastructures for energy services and power generation.

· Clear warning must precede scheduled interruptions especially to other utilities services such as

water treatment plants, sewerage treatment plants etc.

· Assistance must be readily available, free of charge to help consumers understand their bills and make

arrangements for payment, especially when in difficulty.

· Information and consumer education should be made readily available to consumers.

6. Mediation and redress

· There must be comprehensive and fair procedures for complaints and claims available free of charge.

· Consumers must not have to pay for service, which they have not received due to interruptions;

compensation systems should preferably be developed.

· In the work of the bodies representing consumers there should be clear and formal arrangements for

analysis of complaints to inform policy formation.

7. Special assistance

· Special programmes are needed to address the needs of poor consumers – the developments of

‘targeted’ measures to help poor consumers are likely to be more effective than indiscriminate

subsidies. These should focus on helping the poorest most by concentrating on initial connections.

· Special protection is needed for particularly vulnerable consumers, eg people with disabilities, the

elderly and young children, especially regarding protection from disconnection.

8. Governance and consumer influence

· There should be autonomous, clearly identifiable regulation of tariffs and performance standards

supported by effective legal powers regardless of ownership.

· There must be formal published standards to ensure quality and safety - service providers and relevant

authorities must take account of the applicable international standards.

· Through transparent and ethical stakeholder engagement in the regulatory process and monitoring,

governments must ensure that the views of consumers are properly considered to safeguard their

interests, and that options are thoroughly studied at key moments of decision.

· Consumer organizations should have an active role in discussions pertaining to major policy decisions,

including private sector participation, which must be transparent and include public access to relevant

documents. See provisions for under section 69 and 70 of the Water Services Industry Act (WSIA)

· Consumer representatives should have the right of access to relevant information in a comprehensible

form. They should in turn be free to disclose to those whom they represent. Documents must disclose

such matters as proposed cost and tariff policy, and service contracts between, for example, local

government and service providers.

· There should be right of appeal for consumers and their representatives against decisions of regulators.

· When governments make commitments under international trade agreements to commit utilities for

liberalization, they must be able to retain the right to regulate.

· The final responsibility for providing consumer access to energy services must rest with governments

whose actions in that regard should be subject to public review and redress.

Attachment Role of Energy Commission (ST)

Supply

To ensure the provision of adequate, secure and cost-effective energy supplies through developing indigenous

energy resources both non-renewable and renewable energy resources using the latest cost options and

diversification of supply sources both from within and outside the country.

In pursuit of the supply objective, policy initiatives, particularly with respect to crude oil and natural gas, we have

aimed at both extending the life of domestic non-renewable energy resources, as well as diversification away

from oil dependence to include other forms of energy sources.

Utilization

To promote the efficient utilization of energy and discourage wasteful and non-productive patterns of energy

consumption.

The policy's approach to realize this objective is to rely heavily on the energy industry and consumers to exercise

efficiency in energy production, transportation, energy conversion, utilization and consumption through the

implementation of awareness programs. Demand side management initiatives by the utilities, particularly through

tariff incentives, have had some impact on efficient utilization and consumption.

Government initiatives to encourage cogeneration are also aimed at promoting an efficient method for generating

heat energy and electricity from a single energy source.

Environmental

To minimize the negative impacts of energy production, transportation, conversion, utilization and consumption

on the environment.

The environment objective has seen limited policy initiatives in the past. All major energy development projects

are subjected to the mandatory environmental impact assessment requirement. Environmental consequences,

such as emissions, discharges and noise are subjected to the environmental quality standards like air quality and

emission standards.\

Renewable energy policy

The Malaysian government is seeking to intensify the development of renewable energy, particularly biomass,

as the 'fifth fuel' resource under the country’s Fuel Diversification Policy. The policy, which was set out in 2001,

had a target of renewable energy providing 5% of electricity generation by 2005, equal to between 500 and 600

megawatt (MW) of installed capacity.

But based on the report by ST, the contribution of Renewable energy in 2009 was at a dismal 1.2% (not including

hydro – 5.9%). Under the Renewable Energy resources, only mini hydro is listed not large hydro projects)

The policy has been reinforced by fiscal

incentives, such as investment tax

allowances and the Small Renewable

Energy Programme (SREP), which

encourages the connection of small

renewable power generation plants to

the national grid.

The Small Renewable Energy Program

allows renewable projects with up to 10

MW of capacity to sell their electricity

output to TNB, under 21-year licence

agreements.

Numerous applications for the program

have been received, mainly involving

biomass, and of these over half are for

palm oil waste. In 2005 there were 28

approved biomass projects involving the installation of 194 MW of grid-connected capacity. There were also four

approved landfill gas-based projects, with 9 MW of capacity, and 18 mini hydro-electric projects offering 69.9 MW

of total capacity.

Source: Suruhanjaya Tenaga Annual Report

Source: Suruhanjaya Tenaga Annual Report

Source: Suruhanjaya Tenaga Annual Report

Source: Suruhanjaya Tenaga Annual Report

The number of unscheduled interruptions reported in Peninsular Malaysia in 2009 reduced to 108,708 compared

to 112,064 in 2008. Almost 55% of the total unscheduled supply interruptions reported were due to fault in the

network such as loose contacts, quality of work, overloading and inadequate maintenance, followed by

interruptions due to unknown causes at 13.6% and interruptions due to vandalism at 12.6% . A total of 350,353

unscheduled supply interruptions have been reported in Peninsular Malaysia over the last 4 years from 2006 to

2009. Of the total unscheduled interruptions, the main causes were due to lose contact, quality of work,

overloading and inadequate maintenance at 43.6% and followed by interruptions caused by natural disasters at

15.5%.

Source: Suruhanjaya Tenaga Annual Report

Of the total complaints of electricity supply services received in 2009, the complaints on electricity billing,

metering, disconnection and reconnection of supply recorded the highest at 58 cases or 29%. The increase in

complaints on billing is understandable, since the tariff increase on 1st March 2009 has created two blocks rates

for the domestic consumers i.e. one block for the use of less than 400 kWh and the second block for usage of

more than 400 kWh, causing most consumers bill to increase from previous years.

Other reasons were due to delay in meter reading, lack of understanding of the billing computed, non-transparent

calculation by TNB etc.

Solution for TNB project soon

2010/10/15

By K. Harinderan and Noel Achariam

streets@nstp.com.my

RAWANG: A solution to the controversial Kampung Sungai Terentang issue will be found in a month's time, says

Menteri Besar Tan Sri Khalid Ibrahim.

Tenaga Nasional Bhd's (TNB) Central Area Reinforcement (CAR) project in Kampung Sungai Terentang had been on hold for three years because of the objections. Some 2,000 residents had objected to TNB's plan to construct high tension cable towers in the middle of Rawang new village. During a visit to the area, he said the towers' possible adverse impact on the health of the residents would be taken into consideration.

Khalid said a decision would be made once all the technical information was available. He said the state government was evaluating two proposals.

The first option involves moving the proposed towers away from the homes. The cables will run some 10 metres above the homes. "Under this option, none of the houses will be demolished. It addresses the concerns of 51 families who were asked to vacate their homes earlier this year to make way for the construction of the towers," he said.Khalid said the second proposal would involve TNB reserves which ran along Jalan Perdana Rawang. He said the electrical poles would be converted to accommodate higher capacity cables. "The cables will pass through the industrial area located next to the village. "We are looking into the setback space needed to install the monopoles and the safety issues," said Khalid, adding that he had asked the Gombak Land Office, the state Development Board, the state Valuation Department and the Selayang Municipal Council (MPS) to iron out the matter with TNB. Under TNB's initial proposal, which was announced in 2005, more than 60km of transmission lines were to be constructed at an estimated RM300 million. Selayang member of parliament William Leong expressed dissatisfaction over the fact that no TNB representatives were present, even though the MB's office had issued an invitation. "They are of the notion that they have the right to enter the area and begin construction. Although the Federal Court ruled in their favour, this does not give them the right to trespass into private property without the go-ahead from the Gombak Land Office and MPS," he said. In the final ruling of the Federal Court on Nov 20 last year, TNB was instructed to pay RM10.4 million in compensation to relocate the residents and erect the towers.

Leong said they would meet Minister of Energy, Water and Communications Datuk Shahziman Mansor to resolve the matter of installing the 33kV power grid line to connect it to the national grid.

2. Water

Source National Consumer Complaints Centre

Source National Consumer Complaints Centre

Major Complaints on Water Received in National Consumer Complaints Centre 1. Billing Disputes

- Wrong billings - Delay in readjustment and refund - Poor customer service and efficient complaint handling mechanism.

2. Highest Water Leakage and Burden is on consumer

- High water leakage problem and the burdens on consumers.

- Consumers not aware about the consequence of delay and the liabilities involving possible leakage after meter.

3. Low water pressure

- Complaints are not taken seriously by water operators. Consumers has the right for fair service.

4. High rise buildings crisis

- Public are frustrated because they do not know how much they consume and how they actually need to pay.

- Subject to water disruption if the management is not paying promptly to the

water operators.

- High-rise building occupiers also not qualified for the free water since they don’t get bills based on individual consumption.

- In the event there is water leakage everyone in the high rise is burdened. 5. Water Stress

- Deprived by water supply and clean and safe drinking water. - Have to get alternate water source for their daily needs. .

6. Poor Water Quality Poor water quality is the second largest frustrations and complaints received from Sarawak many people in Sarawak still do not enjoy clean and safe drinking water and have to rely on bottled waters for drinking and other sources such as nearby rivers.

Recommendations by National Consumer Complaints Centre

- A standard billing system need to be implemented throughout the nation at least for the life-line usage needs.

- Better customer service and efficient mechanism needed especially for refunds, bill adjustment etc

- Publicize and include reminders in water bills (for example) to create more awareness among the public

- Educate counter staff (post office, banks to sensitize consumers on unusual water bills amount

- Assurance on water access/SUPPLY. - Individual meter has to be introduced in all current and upcoming projects

the soonest. - Monitoring of water operators at all levels (urban, rural, IPTA/S and etc) - Clean and safe water for all

Position By Forum Air Malaysia

State government must:

a. Gazette more water catchment areas and make sure these areas are protected and no development surrounding these areas.

b. Draft a concrete plan for water demand management that is applied in other countries and achieve sustainable water usage.

2. The federal government must: a. Draft and implement the National Water Policy. b. Stress on the integrated water management. c. Prepare fund for adaptation and mitigation of climate change d. Prepare fund to encourage water saving among consumers and also industry. e. Gazette permanent water catchment areas and free from any development that will pollute the

water source.

3. The federal and state government must control the development along the riverside from upstream to downstream. Pollution in river will increase the treatment cost and endanger the safe supply of water.

4. Encourage the usage of alternative water source such as the rainwater harvesting and also increase the awareness of consumer on water usage and conservation.

5. For industry, they must play an active role in reducing water wastage in their operation through: a. Water saving activities b. Usage of water saving technology in the operation.

6. Maintenance and changing of old piping system must be carried on from time to time.

Moreover, leakage monitoring must be applied in order to reduce the percentage of non-revenue water that cost millions ringgit deficit and also water wastage.

7. Allocation of budget from the federal government to ALL state government must be appropriate in order to help ALL state government develop a more comprehensive and complete system of water supply for the people.

8. Water restructuring practice must be done with discussion and meetings between the federal government and also the state government.

9. Flood mitigation must be taken seriously by all players in order to ensure massive flood such as the Kedah, Perlis and Kelantan 2010 flood will not repeat. Flood mitigation project must be planned well with contribution from federal and the state government. Investments on the upgrading of the water treatment plant operation capacity and also water tankers must be done in order to face the challenge from the natural disasters.

10. All water operators must ensure the decrease the of non-revenue water in the near future. This can be done through extensive monitoring and by increasing public awareness. Moreover, there must be transparency in the water billing system in order to avoid the consumer confusion.

11. Development near water treatment plant such as the landfill must be built according to the safety guidelines and the operation of the landfill must be monitored from time to time to ensure the landfill operates normally and no contamination to the water treatment plant. Landfill must be upgraded to sanitary landfill to ensure the safety of the water quality in the surrounding areas.

12. Reserve capacity of water operators in all states must be increased in order to avoid water shortage during massive floods and to ensure the water treatment plant is protected and upgraded in order to face natural disaster.

13. Tariff hike on water tariff must be discussed thoroughly through transparent and ethical stakeholder engagement between the commission, consumers, commercial users, state government and also federal government.

14. Climate change brings more frequent and intense droughts. Reduced rainfall, higher temperatures, diversion of streams that feed lakes usually for construction of dams are factors contributing to the drying up of rivers, wells and lakes. In Hebei, China alone, almost 1,000 lakes have disappeared. Climate change also brings more severe floods, inundates coast-lines to result in intrusion of salt water into fresh water resources. UN scientists calculate that climate change effect will probably account for about a fifth of the increase in water scarcity.

As we can see, the effects of the manmade climate change have caused severe impacts in our

life. Scientific studies showed that in the future, more severe disasters will appear and caused

indescribable effects. Energy, water and food security will be major issues and problem in the

years since so far there is still no real commitment in handling this climate change issue although

the awareness is high.

Therefore, actions such as establishment of national climate fund and also technology transfer

with developed countries will be the crucial matters in combating climate change. Projection

must be reviewed from time to time in order to keep up with the population growth, current

impact of the climate change and also technology available in order to face the wrath of climate

change in the years to come.

3. Sewerage

1. Sewerage service in Malaysia has been a grey area since the British colonization. Sewerage

system is yet to be harmonized throughout Malaysia and actions must be taken in order to set up a better sewerage service in Malaysia.

2. The most common complaints from the consumers are regarding the billing of sewerage services. Billing system for desludging of the septic tank is not clear and misleading. Some problems came from the consumers as they are not well aware of their responsibility on the sewerage service that they are using. Therefore, more awareness and capacity building among the consumers, sewerage industry players and also the government must be enhanced.

3. There must be a clear guidelines and definition on defining the different kinds of sewerage services (e.g. communal septic tank) being used in residential and also industry areas. Most consumers are confused with the terms and definition applied and leads to the refusal to pay for the service. Therefore, road show and capacity building must be must be increased in order to strengthen the public awareness and also knowledge.

4. Federal government must also allocate sufficient amount of budget for the state government for the capacity building and also sewerage piping system in order to improve the sanitary services of the ALL states.

5. Indah Water Konsortium performance must be assessed based on its contribution towards improving sewerage services for ALL, regardless of their location. Sanitation and clean and safe water is basic human survival needs. Aspiring to be a high income nation minus access to basic sanitation services for all citizens or if access to these services remains key development issues for some states.

6. Used to be the premier concessionaire in Malaysia, they must offer their knowledge to other concessionaire in capacity building on the sewerage service. Moreover, information on distribution of different kind of sewerage tanks throughout Malaysia must be shared among all the concessionaires as well. With this, the consumers will not misunderstand that IWK is the sole sewerage concessionaire in Malaysia.

Criteria to assess performance of utilities services must be based on:

- Transparent mechanism and these mechanisms must be harmonized among all service providers of the relevant utilities.

- The ISO TC 224 - Service activities relating to drinking water supply systems and wastewater systems - Quality criteria of the service and performance indicators

o Standardization of a framework for the definition and measurement of service activities relating to drinking water supply systems and wastewater systems. The standardization includes the definition of a language common to the different stakeholders, the definition of the characteristics of the elements of the service according to the consumers expectations, a list of requirements to fulfil for the management of a drinking water supply system and a wastewater system, service quality criteria and a related system of performance indicators, without setting any target values or thresholds.

o This TC has developed three international standards: ISO 24510:2007 - Activities relating to drinking water and wastewater

services -- Guidelines for the assessment and for the improvement of the service to users

ISO 24511:2007 - Activities relating to drinking water and wastewater services -- Guidelines for the management of wastewater utilities and for the assessment of wastewater services

ISO 24512:2007 - Activities relating to drinking water and wastewater services -- Guidelines for the management of drinking water utilities and for the assessment of drinking water services