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Holes in the Water. The Reform of Water services and Competition in Italy

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  • L. Aarnaudo

Abstract

This paper analyzes the state of water services for civil use in Italy, following the path of a rather ambitious reform launched in 1994 and aimed at establishing an integrated water service within a given number of optimal territorial basins. Taking into account some recent literature related to vulnerabilities typical of water services and their liberalization process, the paper checks what the author considers to be the biggest difficulties and failures experienced by the Italian reform, such as regulatory inefficiency, investment sustainability, conflicts of interests spreading amongst public local administrations and companies providing the services. A specific insight into competition drivers of the water industry in Italy is also given by means of a series of recent decisions taken from the archives of the national antitrust authority. On the basis of this general survey, serious doubts are conclusively cast on the quality of the regulatory and institutional framework adopted in Italy for the liberalization of water services.

Suggested Citation

  • L. Aarnaudo, 2011. "Holes in the Water. The Reform of Water services and Competition in Italy," Competition and Regulation in Network Industries, Intersentia, vol. 12(2), pages 173-188, June.
    • Handle: RePEc:sen:journl:v:12:i:2:y:2011:p:173-188
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