Ofwat's internal review of market competition in water

Ofwat report (52 pages, PDF) on market competition in the England and Wales water and sewerage sector following the Shotton case at the Competition Appeal Tribunal and the lack of development of competition through water supply licensing under the Water Act 2003.

Ofwat's main conclusion is that:

we are likely to need changes to the legislation to establish a workable framework in which effective competition will be able to flourish.

Further work is promised in various areas, including a comparison with Scottish Water's wholesale pricing. A consultation on options for longer-term changes is scheduled for June 2007.

For further information or advice please contact Franck Latrémolière.

Filed under Ofwat, Water.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon