ECO3PPI Public Policy and its Impacts - Module 2 Assessment

Assignment Questions:

Your task is to review the farrierswier report and write a brief to commissioners outlining the finding of the review. The brief should provide some background on PREMO framework, its effectiveness as an innovative regulatory framework and suggestions to improve it.
In your answer you need to clearly respond to these three questions;
1. How does the PREMO framework differ from the past approach in water economic regulation?
2. Discuss the effectiveness of PREMO in achieving its desired outcomes, the impact on customers, and the effect it had on water businesses’ planning and development of their price submissions (discuss the advantages and limitations of this framework).
3. How can the PREMO framework be improved to ensure it can drive economic value for government owned regulated industries?