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Regulations and laws play a fundamental role in achieving public policy objectives, including the protection of human health, the environment, the fight against monopolies, or the efficient provision of water and sanitation services, among many others. Good quality regulations pursue these goals, while ensuring that the benefits that they generate for society are greater than their costs.
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The National Superintendence of Sanitation Services (Sunass) is the agency in charge of regulating, governing, and supervising the provision of sanitation services in Peru. Within its portfolio of functions, it regulates the tariffs that service provider companies (SPC) charge to their users and has a major role in setting access and quality standards for sanitation services. Sunass also carries out inspections, applies sanction, and resolves user claims and conflicts among service provider companies. In response to the 2016 OECD report Regulatory Policy in Peru. Assembling the Framework for Regulatory Quality, Sunass has begun to implement a system of regulatory impact assessment (RIA) to improve the quality of its regulations.
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Regulatory impact assessment is a key element of the regulatory governance cycle, as it ensures the quality of new regulation by assessing its potential impact. This chapter presents the context of the regulatory governance cycle and how RIA fits within the lifecycle of regulation. The chapter also outlines the OECD best practice principles on RIA and presents the status of ex ante assessment in OECD countries.
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RIA must be understood as a comprehensive ex ante evaluation system of the regulation. This chapter contextualises the importance of the implementation of RIA at Sunass. This chapter also lists the key elements for implementing RIA as a system. This includes the assumptions for the preparation of a RIA, exceptions, technical guidelines, and thresholds for different types of RIA analysis. The chapter finishes by introducing the preparation and oversight as independent processes.
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This chapter exposes specific topics to implement the RIA system at Sunass. The chapter describes the elements necessary to implement RIA: the design of legal reforms necessary for RIA; the material needed to carry out RIA; staff training; the development of technological tools; pilot testing; and communications campaign. The second part of the chapter shows a proposal for performing both the preparation and oversight of the RIA.
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This chapter shows the technical guidelines for developing specific elements which conform the RIA. In real terms, it is the preparation manual. Thus, the methodologies for developing the following elements are presented: public consultation and engagement of stakeholders; definition of the problem; purpose of the regulation; description of the proposal; identification of alternatives; cost-benefit analysis; identification of the solution chosen; preparation for the framework of implementation and assessment.
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This chapter describes the international cases of water regulators of Australia, Mexico, and United Kingdom on the use of the Regulatory Impact Assessment (RIA). The purpose of the case studies is to provide different perspectives on the use of the RIA tool by economic regulators in these countries, mainly on cases where it is applied, where a waiver exists, and the RIA process that each of them uses.
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This chapter is aimed to make a recount and analysis of the existing efforts to implement the RIA in Peru. On one hand, it shows the work of the central government, mainly by means of the Presidency of the Council of Ministers and the Ministry of Economy and Finance. The chapter also shows three case studies detailing the work of three independent regulators: Ositran, Osiptel, and Osinergmin. The purpose of the chapter is to allow Sunass to learn some lessons and best practices of their peers.