The development of competition in the English and Welsh water and sewerageindustry

This paper examines the introduction of competition into the English and We lsh water and sewerage industry following privatisation of the 10 regional water authorities in 1989. It outlines the development of comparative, capi tal and product market competition, arguing that the greatest opportunities now lie with the last through the introduction of common carriage agreemen ts, the extension of Inset appointments and the introduction of transferabl e abstraction licences. Despite competitive innovations, the industry remai ns highly regulated, complex and difficult to enter. One of Ofwat's outstan ding challenges for the next decade is to examine the means by which the re gulatory burden might be lightened and barriers to entry lowered, to encour age potential entrants to compete with incumbents.