Towards more Competition in Water Infrastructure – Which Regulation do we Need?
Rahel Schomaker

For decades water infrastructure has been regarded as given and free, with water supply being the duty of the state. This perception of water infrastructure is not longer suitable, as it can be classified as a private good. To open this infrastructure sector for private participation and more competition, a sound regulatory framework is needed – caused in particular by the characteristics of water infrastructure as a natural monopoly. The introduction of more competition is a challenge for all actors involved, the public administration as well as private enterprises and user groups. In our paper, after a short introduction and analysis of the main characteristics of water infrastructure, we delineate and discuss different regulation models that could ensure more competition in water infrastructure, and the interest of actors involved, in particular the political-administrative constraints. Policy recommendations and a brief outlook conclude the paper.

Full Text: PDF     DOI: 10.15640/ppar.v2n4a1