The Regulation of Public Utilities of the Future in Latin America and the Caribbean: Water and Sanitation Sector

This paper provides high-level strategic insight for taking forward water and sanitation regulation in Latin America and the Caribbean (LAC). To do this, the paper analyzes the expected impact of future changes facing the sector; unpicks the England and Wales (E&W) benchmark case study; and reviews the current situation of the sector in LAC. The main conclusion of the paper is simple but powerful: Water and sanitation sector regulation should keep the focus on solving the known problems of the past. The paper also discusses a number of regulatory innovations, some of which may be worth implementing in LAC. However, the authors of the paper recommend that those innovative regulatory policies should only be pursued if the focus on solving the known problems of the past is not jeopardized.