Goals of water tariffs Full cost recovery Equity Administrative feasibility and efficiency of tariff system Economic efficiency.

Reform of 1994 , law 36:Reform of 1994 , law 36:

each region is defined into optimal each region is defined into optimal geographical portions (ambiti territorial geographical portions (ambiti territorial ottimali – ATO) .ottimali – ATO) . ATOs are controlled by Autorità ATOs are controlled by Autorità d’ambito territoriale ottimale.d’ambito territoriale ottimale. This relationship is characterized by an This relationship is characterized by an information asymmetry.information asymmetry.

RESULTS AND COMMENTS:

Italy is one of the European countries with higher presence of water, but it has also the higher percentage of bad management.So, it needs an investment to reconstruct the water network and to restate tariffs to control water consumption.