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The development of competition in the English and Welsh water and sewerage industry

Author

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  • John W. Sawkins

Abstract

This paper examines the introduction of competition into the English and Welsh water and sewerage industry following privatisation of the 10 regional water authorities in 1989. It outlines the development of comparative, capital and product market competition, arguing that the greatest opportunities now lie with the last through the introduction of common carriage agreements, the extension of Inset appointments and the introduction of transferable abstraction licences. Despite competitive innovations, the industry remains highly regulated, complex and difficult to enter. One of Ofwat’s outstanding challenges for the next decade is to examine the means by which the regulatory burden might be lightened and barriers to entry lowered, to encourage potential entrants to compete with incumbents.

Suggested Citation

  • John W. Sawkins, 2001. "The development of competition in the English and Welsh water and sewerage industry ," Fiscal Studies, Institute for Fiscal Studies, vol. 22(2), pages 189-215, June.
  • Handle: RePEc:ifs:fistud:v:22:y:2001:i:2:p:189-215
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    File URL: http://www.ifs.org.uk/fs/articles/0039a.pdf
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    Cited by:

    1. Reto Foellmi & Urs Meister, 2012. "Enhancing the Efficiency of Water Supply—Product Market Competition Versus Trade," Journal of Industry, Competition and Trade, Springer, vol. 12(3), pages 299-324, September.
    2. Bottasso, Anna & Conti, Maurizio, 2003. "Cost Inefficiency in the English and Welsh Water Industry: An Heteroskedastic Stochastic Cost Frontier Approach," Economics Discussion Papers 8872, University of Essex, Department of Economics.
    3. Hunt, Chris & Dunstan, Keitha, 2008. "Why do Queensland Urban Water Entities Resist the Adoption of User Pays Pricing?," Working Paper Series 19100, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    4. Sawkins, John W. & Reid, Scott, 2007. "The measurement and regulation of cross subsidy. The case of the Scottish water industry," Utilities Policy, Elsevier, vol. 15(1), pages 36-48, March.
    5. repec:vuw:vuwscr:19100 is not listed on IDEAS
    6. Chris Hunt & Dunstan, Keitha, 2008. "Why do Queensland Urban Water Entities Resist the Adoption of User Pays Pricing?," Working Paper Series 3999, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.

    More about this item

    JEL classification:

    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities

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