Competition and economic regulation in water. The future of the European water industry

Abstract:

Water regulation has previously been concerned with quality standards and environment issues, but the rising tide of privatisation and the breaking down of institutional authorities controlling water supply calls for a fresh approach. This book reviews the progress to date and plants some signposts as to the way ahead.

The work is organised over seven chapters, the first by way of introduction setting out the framework for the study. Chapter two breaks down into two parts, dealing first with the rationale for regulation in markets in general, and in infrastructure industries with natural monopoly characteristics in particular. The second part considers the water supply industry and how relevant the forms of competition used in other utility sectors might be to water. Chapter three sets out the methodology for the three case studies in the United Kingdom, France and Germany which follow in later chapters. Chapter four examines the water sector in England and Wales, which has a history of private ownership and independent regulation, assessing the performance of the industry and the effectiveness of the regulatory regime. The French industry is controlled through competition for water and regulation through contract which is explored in chapter five. Germany has markedly different characteristics, such as large city-based multi-utilities and a joint venture aspect where ownership is shared between the public and private sectors, and these are reviewed in chapter six. The final chapter takes the lessons learned in the three case studies and tests their adaptability for use in less developed countries.

The work will interest those engaged in water utilities, economic researchers, governments and policy makers dealing with the changing state of the water sector in Europe and beyond.

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