Closely linked to the regulation of the price of the service is the quality (level) of service provided for that price, as described in Chapter 7. While it is possible that competition may reduce the need for regulation of quality, a number of guidelines are suggested to ensure that municipal objectives are met through the existing regulatory framework. These include:
• The use of outcome-based or possibly output-based performance measures rather than input- or process-based rules. This means measuring results (e.g., reduced mortality and morbidity, or the number of households serviced) rather than monitoring materials and construction methods.
• Ensuring that the regulatory environment enables graduated improvement rather than unachievable high levels of service. As we have seen earlier, regulatory environments that establish ambitious universal coverage rules can be inappropriate. South Africa's Municipal Infrastructure Investment Framework, illustrated in Box 10.8, is an example of a national policy framework that specifies in principle what levels of service government regards as acceptable.
• The regulatory framework for graduated service provision should provide incentives for change over time: for the consumers to improve the service they receive, and for service providers to improve the service they provide. This approach tends to encourage immediate (perhaps temporary) improvements rather than lengthy delays before the poorest groups see any change to the quality of service provided.