Chile’s Sanitation regulatory framework is proven, stable and transparent. It has been in place for more than 25 years.
The Superintendency of Sanitation Services (SISS) acts as the regulator counterpart in tariff setting process, which lasts 1 year
Tariffs are reset every five years, based on an objective and technical model:

• Tariffs are calculated based on long term total costs of a model company
• Company and regulator have equal roles in the tariff calculation process
• Discrepancies are solved by an independent experts committee
• Minimum real return on assets of 7% after taxes
• Automatic interim adjustments linked to polynomials based on CPI and WPI indexes

There are very low delinquency levels due to the legal empowerment to disconnect clients
The government provides subsidies for low-income clients (7.6% of clients)
The regulatory framework of the Chilean water industry has been fundamental to the development of the sector.

The Chilean sanitation industry is dominated by privately-held operators. 96% of clients are served by private operators. IAM and its subsidiaries have 43% market share by clients through indefinite concessions.

Aguas Andinas S.A. has 100% service coverage in drinking water, 98.7% service coverage in sewage collection and 100% service coverage in sewage treatment in Santiago.

Aguas Cordillera S.A. has 100% service coverage in drinking water, 98.8% service coverage in sewage collection and 100% service coverage in sewage treatment.

Aguas Manquehue S.A. has 100% service coverage in drinking water, 99.0% service coverage in sewage collection and 100% service coverage in sewage treatment.

Essal S.A. has 100% service coverage in drinking water, 95.7% service coverage in the X Region and 92.3% in the XIV Region of sewage collection and 100% service coverage in sewage treatment.