The Italian regulatory Authority for Energy, Networks and Environment (ARERA)

The Italian regulatory Authority for Energy, Networks and Environment (ARERA) is the independent multi-sector regulator for the whole country. It employs permanent staff (208 persons), fixed-term staff (14 persons) and staff detached from other national administrations (16 persons). Its revenues come only from regulated entities, in 2020 they amounted to € 68,95 million. Its powers to regulate the integrated water services were provided by law in 2011.

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The Italian regulatory Authority for Energy, Networks and Environment (ARERA)

The Italian regulatory Authority for Energy, Networks and Environment (ARERA) is the independent multi-sector regulator for the whole country. It employs permanent staff (208 persons), fixed-term staff (14 persons) and staff detached from other national administrations (16 persons). Its revenues come only from regulated entities, in 2020 they amounted to € 68,95 million. Its powers to regulate the integrated water services were provided by law in 2011.

As the Regulatory Authority for water, ARERA’s main responsibilities are:

  • setting tariffs for protected markets and the use of monopoly infrastructures (define cost components, set/update tariff methodology for tariff determination, approve tariffs);
  • setting compulsory standards for technical and commercial quality of service, through incentives, penalties, and refunds;
  • setting rules for administrative and accounting separation of vertically integrated companies;
  • setting minimum conditions to be included in investment programmes and economic-financial plans provided by Local Authorities, and monitoring their compliance;
  • collecting economic-financial data from operators, ensure compliance of Regulation;
  • consumer protection, infringement procedures, dispute settlement; and
  • providing opinions to Government and Parliament

You can find this data and the country profiles of all the 25 WAREG Members in our Water Governance Report (2021).

Legal Framework

The main legislation on the water sector of Italy is the following:

  • Law decree 133/2014, the general rules for the organisation of integrated water services and the governance of the sector;
  • Resolution 580/2019/R/idr; Water Tariff Method;
  • Resolution 656/2015/R/idr, the standard agreement for the Regulation of relationships between entrusting entities and providers of the water services;
  • Resolution 917/2017/R/idr, Regulation of technical quality; and
  • Resolution 186/2020/R/idr, contractual quality of water services.

Institutional Framework

The water sector in Italy is managed at the National, Regional and Sub Regional levels.

The Ministry of Environment defines general principles of water uses and services at the national level, provides specific rules, mechanisms and procedures concerning the integrated water sector and ensures its compliance.

Regions set the geographical bounds of the area into which integrated water service has to be entrusted, called “ATO” or “Ambito Territoriale Ottimale”. In addition, they identify the Local Authority – EGA, in charge of organising integrated water service at the local level, planning investments and entrusting the management of service to the operator.

Country data

  • Area: 301.338 Km2
  • Population: 60.59 million people (2020)
  • Population density: 201,06 inhab./km2 (2020)
  • Per capita consumption: 204 l/p/d (2020)

Main water and sanitation services data

  • Number of operators of drinking water and/or sanitation services: > 2000
  • Sector Turnover: 5900 million €
  • Number of employees: 30 000 (2019 data published in Utilitalia’s Blue Book)