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Customer‐centric regulation

The case of Victorian urban water sector

Bibliographic Data

ID12899706
AuthorsJayanath Ananda (0000-0002-4072-6725, corresponding author), Nicholas Pawsey (0000-0002-9734-4015), Tahmid Nayeem (0000-0003-1818-8024)
Year2020
Volume16
Issue2
Pages536-556
Publication date2020-10-18
Open AccessYes
TypeARTICLE
VenueRegulation & Governance (JOURNAL)
Journal identifiersISSN: 1748-5983 • E-ISSN: 1748-5991
PublisherWiley (PUBLISHER • GB)
DOI10.1111/rego.12368
OpenAlexW3094177964
LanguageEN
References cited33

The growing interest in customer engagement (CE) has triggered a new wave of reforms, particularly in utility regulation. Within the water sector, there has been a shift from a focus on cost‐reflective pricing toward customer‐centric pricing processes designed to identify customer preferences and expectations. The Victorian water sector in Australia offers a unique opportunity to explore the outcomes of these CE trends given the recent first‐time application of a novel Performance, Risk, Engagement, Management, and Outcomes (PREMO) framework. Based on in‐depth interviews with senior industry representatives from a diverse sample of Victorian water utilities, this paper critically analyses the scope, design, and incentive mechanisms that underpin the new regulatory process. Findings indicate that CE has potentially beneficial aspects to both the regulator and the regulated utility, including more transparency in capital projects and a better understanding of customer preferences in service delivery

Business · Customer engagement · Customer retention · Economics · Incentive · Industrial organization · Microeconomics · Scope (computer science · Service (business · Service quality · Transparency (behavior · Water industry · Water sector · Water supply · Auction Theory and Applications · Computer Science · Engineering · Public Procurement and Policy · Water resources management and optimization · Marketing

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