Introduction

The Water Services Regulatory Commission (WSRC) of Mongolia was established in June 2012 under the Law on Utilization of Urban Settlements’ Water Supply and Sanitation. The WSRC’s responsibilities are defined as “determining water service charge and tariff on utilization and service of water supply and sewage, and for issuing special licenses to legal entities and making professional recommendations and decisions.”

Operation of WSRC is regulated by the Law on Utilization of Urban Settlements’ Water Supply and Sanitation, Law of Competition and Rule of Water Services Regulatory Commission, which was approved by the Order No. 46 of the Government in 2012. The WSRC has five commissioners and 26 officers working in three departments: licensing, tariffs and administration and legal.

Although, in the last few years there has been some improvement within the framework of assistance from overseas donor organizations in utilities operation and technology, the revenue from its operation cannot cover all the operational costs, due to no cost-based tariff regulation. Moreover, accumulated loss has been increasing and savings were not generated for renovation and payback of loans and their interest, leading to the deterioration of service quality. 

The WSRC will approve tariff of water services in a different way depending on local feature, operation of licensee and its services coverage. Consequently, advantages such as reducing the water losses, lowering the financial loss and clearing the failure of future operation of the utilities, which provide fresh water that meets standard requirements, to the citizens, entities and factories and treat wastewater.

In the framework of our WSRC’s objective, we try to improve the public water utilities’ competence in the market, introduce good practices and advanced technologies and cooperate with regulatory authorities of other developed countries.

Also we will submit our proposal on law, legislation and rule of water regulation issues to the Government, improve legal environment, set the water tariff and implement it in stages. 

According to Utilization of Urban Settlements’ Water Supply and Sanitation, WSRC shall have the following full powers:

• To set the terms and conditions to obtain a license;
• To approve services tariff of licensees, develop methodology for setting fresh and waste water price and publish
• To set the depreciation and accumulation volume of assets according to the Article 15.1.11 of Law on Utilization of Urban Settlements’ Water Supply and Sanitation
• To obtain, extend, suspend and cancel the license according to the Article 12 of Law on Utilization of Urban Settlements’ Water Supply and Sanitation
• To set operational and licensing terms and requirements for licensees and control its implementation
• To resolve disputes between licensees and consumers in accordance with its jurisdiction
• To decide whether to accept changes in the case of a licensee being re-organized and reforming the construction, line, equipment and other assets and pledge assets which can be influenced in normal activities according to the license;
• To establish data regarding economic performance, technology, human resources and operation according to the license; request related information from licensees
• To approve Entity’s Relationship Rule
• To approve Technical Terms Rule