BENEFITING BUSINESS WITHOUT HARMING HOUSEHOLDS: THE IMPACT ON CONSUMERS OF UPSTREAM MARKET REFORMS IN THE UK'S WATER SECTOR

摘要

Upstream activities (abstraction, treatment, distribution) account for about 90 per cent of the water sector value chain, and are thus the major element in the liberalisation of the sector and the major source of potential efficiency gains. The remaining 10 per cent comprises retail activities. This article reviews the various forms of upstream competition and considers the impact that they are likely to have on household and business customers. This discussion identifies both benefits and certain risks to customers. This article also considers the risks that might arise under the UK Government's Water White Paper proposals and how they might be mitigated.