Study points out recommendations for the sustainability of the water sector in Portugal

The promotion of the aggregation of smaller management entities, the continuity of certification practices and greater rigor in the control of water losses and in the allocation of personnel maps are the main recommendations pointed out by a study carried out by Portuguese researchers, which identified and analyzed key indicators for the performance of management entities and for the sustainability of the water sector in Portugal.

In the scientific article “Drivers of water utilities' operational performance – An analysis from the Portuguese case”, researchers from the Center for Research in Economics and Management (CeBER) at the University of Coimbra (UC) and professors at the Faculty of Economics at UC, Rita Martins and Luís C. Dias, and the researcher at CeBER and the Center for Biological Engineering at the University of Minho and professor at the Instituto Superior de Engenharia de Coimbra, António L. Amaral, focused on «identifying the determinants of the performance of management entities of the water sector, and therefore, of the sustainability of the sector, information that is important to define or refine operational recommendations, as well as to establish guidelines that allow achieving the objectives of the sector's strategic plans», they contextualize.

The research team analyzed data from annual reports produced by the Regulatory Entity of Water and Waste Services (ERSAR), published between 2015 and 2019, which present information on the management entities in Portugal, of the sectors of supply of drinking water and sanitation of residual waters.

Among the main indicators analysed, stand out «the energy consumed and produced by the management entities, the staff allocated, annual income and expenses, the volume of water or waste water in the system, as well as the volume treated and billed, losses of drinking water, reuse of treated wastewater and the volume of sludge generated», reveal the researchers. At the same time, the authors analyzed potentially relevant factors to explain the performance of the entities in the mentioned indicators, namely: «the dimension of the entity, the certification policy, the typology and model of management of the entity, the scope of conducts or collectors and rehabilitation practices , and compliance with quality parameters for drinking water or treated waste water», they indicate.

This analysis revealed three main results: 1) the importance of the size of the management entity in operational indicators (allowing gains of scale); 2) the influence of allocated personnel and water losses on entities' expenses; 3) the essential role that the largest entities attribute to a certification policy (environmental, health and operational safety). The study also made it possible to verify that the larger entities and the certified entities «are mostly related to a management model of the concession type and predominantly of urban typology», explains the research team.

The set of recommendations presented in this investigation is in line with «the guidelines of the Strategic Plan for Water Supply and Management of Waste and Rainwater 2030 (PENSAARP 2030), of the Secretary of State for the Environment», namely with regard to « to the aggregation of smaller entities, as well as some planned efficiency measures, which involve reducing water losses, increasing control of expenses and staff allocation, and quality certification practices», advance António L. Amaral , Rita Martins and Luís C. Dias.

For the future, the researchers underline the importance of «deepening some relationships between the management model, the typology of the treatment plants and the certification policy» in favor of the performance of the managing entities and, consequently, the sustainability of the sector.

The scientific article is published in the Journal of Cleaner Production and is available here.

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