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Book Details
Abstract
In most network industries, new dynamics are leading to an unprecedented opening up to competition and private sector participation. With the development of a single European market, the in-stages liberalisation process of public utilities has spread to almost all sectors. However, the water supply and sanitation (WSS) sector is considered somehow different and it has been excluded until recently from the restructuring processes achieved in other sectors.
Water and Liberalisation: European Water Scenarios presents a better understanding of the specific demands of the WSS sector. Covering the operators' strategies, the regulatory dynamics as well as their interactions on the evolution of the sector, it addresses the likelihood, the nature, and the forms the WSS sector may take in Europe in the foreseeable future. Adopting a neutral political stance, the book analyses the implications of alternative scenarios in economic, ecological, social, legal, and institutional terms.
Key sections include: In depth introduction to the current situation in the WSS sector; The European water supply and sanitation markets; The institutional framework of the water supply and sanitation sector in the EU: a comparative analysis; Analysis of the EU explicit and implicit policies and approaches in the sector; Analysis of the strategies of the water operators in Europe scenarios on the evolution of the water sector in Europe; Economic, environmental, & social implications of the scenarios; Major implications per scenario.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Contents | vi | ||
| Introduction: Liberalisation, Privatisation and Network Industries: a similar path for water? | 1 | ||
| Private Sector Participation in Network Industries: an important trend | 2 | ||
| Facts and figures | 2 | ||
| The need to go beyond the ideological debate | 3 | ||
| Liberalisation: a uniform process across network industries? | 3 | ||
| Models for network industries’ liberalisation | 4 | ||
| Liberalisation in European network industries | 5 | ||
| The likely evolution of water supply in Europe: towards one of these models? | 6 | ||
| Structure of the book | 8 | ||
| Part 1: The WSS sectors in Europe | 9 | ||
| Part 2: Scenarios for the evolution of the sector | 9 | ||
| Chapter I: The European Water Supply and Sanitation Markets | 11 | ||
| Introduction | 11 | ||
| The integrated market framework | 13 | ||
| The market for abstraction and discharge | 17 | ||
| The market for suppliers | 17 | ||
| The market for delegated contracts | 19 | ||
| The market for drinking water and sewerage services | 24 | ||
| Market dynamics | 28 | ||
| The tier of entities that are directly involved | 28 | ||
| The indirect involved stakeholders | 31 | ||
| Perceived liberalisation experiences | 31 | ||
| Conclusion | 32 | ||
| Chapter II: Policies Regulating the Water Supply and Sanitation sector in Nine European Countries | 34 | ||
| Introduction | 34 | ||
| Definition of Objectives in Water Supply and Sanitation Policies | 36 | ||
| Policy Problems Observed and Outlined | 36 | ||
| Policy objectives | 38 | ||
| Policy Instruments | 39 | ||
| Policy Mix within Each WSS Sub-sector | 39 | ||
| Standard Profile of the Policy Mix | 40 | ||
| Target Groups of Policy Action in the WSS Sector | 42 | ||
| Institutional arrangements | 42 | ||
| Organisation of the Public Authorities | 42 | ||
| Status of the Suppliers | 44 | ||
| Financial Flows | 46 | ||
| Liberalisation practices | 48 | ||
| Policy Impacts | 50 | ||
| Perspectives | 51 | ||
| Chapter III: Analysis of the European Union Explicit and Implicit Policies and Approaches in the Water Supply and Sanitation | 54 | ||
| Introduction | 54 | ||
| Existing European Policies in the WSS sector | 55 | ||
| Taking stock of the liberalisation definitions | 55 | ||
| European directives on standards: various influences among countries | 56 | ||
| Water Framework Directive: structuring principles for WSS services | 58 | ||
| The framework created for a liberalisation policy in the wss sector | 61 | ||
| Empirical Evidence and doctrinal evolution in the liberalisation process of network industries | 61 | ||
| Evolution of the EU doctrine and practice for the WSS sector | 68 | ||
| Conclusion | 77 | ||
| New stakeholders | 77 | ||
| The nature of WSS services | 78 | ||
| The evolution of the regulation on public-private partnership and the rules for competition | 78 | ||
| Chapter IV: Analysis of the Strategies of the Water Supply and Sanitation Operators in Europe | 82 | ||
| Introduction | 82 | ||
| Typology and map of operators across Europe | 83 | ||
| Clustering of the 16 countries | 85 | ||
| The strategies of operators in the water sector | 86 | ||
| Framework for analysing operators’ strategies | 86 | ||
| Main strategies per type of operator | 90 | ||
| Conclusion | 99 | ||
| Annex | 101 | ||
| Chapter V: Identification and Description of Plausible Water Liberalisation Scenarios | 104 | ||
| Introduction | 104 | ||
| Scenarios and Scenario Building | 105 | ||
| Scenarios | 105 | ||
| Scenario Building | 106 | ||
| The Euromarket Scenario Building Methodology | 109 | ||
| Identification of Euromarket Scenario Outlines | 110 | ||
| Mapping the “possibility space” | 110 | ||
| Selecting the Final EU End States | 115 | ||
| Description of Euromarket Scenarios | 116 | ||
| EU End States and EU Storylines | 116 | ||
| EU Actor and Critical Event Analyses | 116 | ||
| Member State Storylines | 117 | ||
| Conclusions | 125 | ||
| End State Relationships | 125 | ||
| Regulatory Relationships | 125 | ||
| Extent of Liberalisation | 126 | ||
| EU Storyline Relationships | 126 | ||
| Member State Storylines | 131 | ||
| Overall Implications | 133 | ||
| Annex | 134 | ||
| Chapter VI: Economic Implications of Water Scenarios | 142 | ||
| Introduction | 142 | ||
| Regulatory Models, the Market and Performance | 143 | ||
| Guidelines for regulatory reform: a roadmap | 143 | ||
| Dimensions of general interest | 144 | ||
| Competition in the market | 145 | ||
| Unbundling | 145 | ||
| Competition for the market | 147 | ||
| Monopoly with incentive regulation | 148 | ||
| Non-market failures and limits to state intervention | 149 | ||
| The performance of private and public water management systems | 149 | ||
| Scenarios and economic implications | 150 | ||
| From Regulatory Model to scenario | 150 | ||
| Scenario 1: Delegated contracts and strong regulation | 152 | ||
| Scenario 2: Delegated contracts and extreme competition | 154 | ||
| Scenario 3: Outsourcing | 155 | ||
| Scenario 4: Regulated Monopoly | 156 | ||
| Scenario 5: Direct Public Management | 158 | ||
| Scenario 6: Community Management | 159 | ||
| Conclusion | 161 | ||
| Annex | 164 | ||
| Chapter VII: Analysis of the Environmental Implications of the Scenarios | 167 | ||
| Introduction | 167 | ||
| Delegation contracts | 169 | ||
| Outsourcing | 170 | ||
| Regulated Monopolies | 171 | ||
| Direct Public Management | 172 | ||
| Community Management | 173 | ||
| Synthesis | 174 | ||
| Conclusion | 175 | ||
| Chapter VIII: Analysis of the Social Implications of the Scenarios | 177 | ||
| Introduction | 177 | ||
| Social Implications and the definition of social indicators | 178 | ||
| What social implications mean for the water supply and sanitation sectors? | 178 | ||
| Evaluation of the indicators on the different scenarios | 184 | ||
| Scenario 1: Delegation Contracts and Strong Regulation | 185 | ||
| Scenario 2 Delegation Contracts and Extreme Competition | 186 | ||
| Scenario 3 Outsourcing | 186 | ||
| Scenario 4: Regulated Monopoly | 188 | ||
| Scenario 5 Direct Public Management | 190 | ||
| Scenario 6: Community Management | 191 | ||
| Conclusion | 193 | ||
| Chapter IX: Liberalisation and Private Sector Involvement in WSS: The European Experience | 196 | ||
| Introduction | 196 | ||
| Development of the WSS industry and drivers of PSP | 197 | ||
| Analysis of Liberalisation and PSP opportunities in the WSS Sector | 200 | ||
| Alternative models for organising WSS services provision | 205 | ||
| Assessment | 207 | ||
| Concluding remarks | 211 | ||
| Annex | 215 | ||
| Conclusion: Institutional and Organisational Dynamics and Trade-Offs: no Single Path For Water | 217 | ||
| Institutional framework and main criteria for its assessment | 217 | ||
| The institutional framework | 218 | ||
| The stability criterion and its main indicators | 218 | ||
| The efficiency criterion and its main indicators | 219 | ||
| The legitimacy criterion and its main indicators | 219 | ||
| Assessment of the institutional implications of scenarios | 220 | ||
| Assessment of scenarios | 220 | ||
| Comparison | 222 | ||
| Conclusion | 223 | ||
| Index | 224 |