The Organisation for Economic Co-operation and Development and the Asia Water Council have published an action plan to strengthen economic regulation of Philippine water and sanitation services. It recommends consolidating fragmented oversight under an independent Water Regulatory Commission, harmonising tariff methodologies and performance standards, rationalising service delivery through aggregation and establishing a centralised national water information system. These reforms are intended to support universal access, which is estimated to require about USD 18 billion of investment between 2020 and 2030, and address water security risks expected in parts of the country by 2040. The report finds that overlapping regulatory mandates, inconsistent tariffs and political interference often prevent full cost recovery and weaken investment incentives. More than 28,000 providers operate across the sector, many without the scale, financial capacity or technical expertise to deliver reliable services. The roadmap calls for common tariff principles, market-based returns, proportionate performance incentives and targeted subsidies for affordability. It also proposes integrating small and community providers, supporting shared infrastructure and multi-local government projects, and using licensing and financing incentives to encourage consolidation. Pending the Water Regulatory Commission’s creation, existing regulators should form a task force to coordinate methodologies, data standards and capacity building. The proposed integrated information system would link existing agency platforms through common definitions, mandatory data sharing and interoperable technology, supported by investment in bulk metering and real-time monitoring. The action plan sequences these measures across short, medium and long-term horizons and recommends anchoring regulatory objectives, aggregation pathways and data governance in legislation.

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