Do Governance Arrangements Affect the Voluntary Adoption of Water Safety Plans? An Empirical Study of Water Utilities in Portugal

What factors influence the voluntary adoption of Water Safety Plans (WSPs) by water utilities? EU Directive 2015/1787, October 6th, on water quality for human consumption, mandates the implementation of a risk assessment process for all water utilities. The strategic approach present in WSPs may be decisive for this purpose, allowing utilities to pursue effective risk assessments with positive repercussions for public health and environmental protection, as well as for the governance of the water sector. This article investigates the factors influencing the voluntary adoption of WSPs by water utilities in Portugal prior to the change in the national regulatory framework. More specifically, it seeks to explore whether the governance arrangement of water utilities – in-house bureaucracies, municipal corporations, concessions to private firms or public-public partnerships – affects the likelihood of adoption of a WSP. The results indicate that governance arrangements can make a difference when it comes to the adoption of this methodology, suggesting that water utilities run by in-house bureaucracies are less likely to adopt WSPs. The dimension is also a relevant factor as utilities serving above 50,000 residents or 10,000 m3/day are more prone to adopt WSPs. Moreover, water utilities with quality management systems in place are more predisposed to adopt WSPs. Broadly, the article urges all stakeholders, mainly water utilities and national regulators, to implement measures that lead to the best possible results considering that the implementation of WSPs is a major upgrade in water quality assurance.