Publication: Water Privatization and Regulation in England and Wales
In 1989, the United Kingdom embarked on one of the first modern privatizations in the water sector, selling assets under license and setting up an independent economic regulator. An important regulatory innovation is its use of price caps and yardstick competition. The author highlights two lessons from U.K. regulatory experience: effective price cap regulation has heavy information requirements, and the necessary data and analytical tools take time to assemble. And such built-in checks and balances as financial autonomy for the regulator and status as an independent government department are not always enough to prevent political interference.
“van den Berg, Caroline. 1997. Water Privatization and Regulation in England and Wales. Viewpoint: Public Policy for the Private Sector; Note No. 115. © World Bank, Washington, DC. http://hdl.handle.net/10986/11585 License: CC BY 3.0 IGO.”
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