The efficiency equation for water and wastewater operators in romania

Increasing and modeling efficiency is a very important aspect related to public water and sewerage utilities. An important element of measuring the efficiency of water companies is the amount of profit obtained. In previous articles we have analyzed problems of technical efciency in Romanian water and sewerage operators, in this article we present a multiple linear regression on net profit, which is an expression of economic efficiency. Using the tools of econometrics, we have modeled which elements have an important effect on increases or decreases in the profit obtained. The equation was created on the basis of the annual financial statements of the Romanian water and sewerage operators for the period 2014-2018. With the help of multiple linear regression we can predict the level of profit growth if different elements of the regression increase. The results of the research can be useful to the management of water and sewerage operators, Inter-Community Development Associations, water and sewerage regulators, as well as to economists doing sectoral analyses related to water and sewerage