Establishing a new water tariff method that complies with European principles and respects statutory autonomy: The case of South Tyrol

This paper describes a path-dependent regulatory process to define a new water-tariff calculation method for European regions and provinces requiring context-specific regulation. In 2017, South Tyrol, an autonomous province in north Italy, decided to design a new water tariff-setting method. The case of South Tyrol illustrates the application of the action research method. It offers insights on the regulatory tools available to define new water-tariff methods that comply with national and international frameworks, while considering contextual specificities that require simplicity (i.e., clarity and administrative ease). The results encourage using different regulatory instruments, following a contingency approach, to create diverse tariff structures.