Publication: Regulating Water Companies
Date
1996-05
ISSN
Published
1996-05
Author(s)
Abstract
The water industry differs in two key
respects from such other network industries as gas,
electricity, and telecommunications. First, it offers fewer
opportunities for competition among suppliers, since the
network of pipes accounts for a large part of the total cost
of water and can be run efficiently only as a monopoly.
Second, the quality of water is crucial but hard for
consumers to check. So, to get the best performance out of
water companies, governments need to regulate the price and
quality of water. To do that job well, regulators must know
the appropriate price. The authors explain that the best way
to discover this price is to auction the right to supply water.
Citation
“Klein, Michael; Irwin, Timothy. 1996. Regulating Water Companies. Viewpoint: Public Policy for the Private Sector; Note No. 77. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/8f9ff7f6-7d83-5f1d-a8f3-5cd64ccf1b4c License: CC BY 3.0 IGO.”
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