Water regulation in Europe : only for idealists? : interconnection, access pricing and 'Europeanisation' of water management : UK, Hungary and the EU, from competition policy perspective

Abstract

Water is a scarce resource in Europe. However, scarcity differs from the North to the South. In different member states of the European Union, under different water management regimes the final price of water reflects diverging approaches to water supply. Water being a scarce resource and water supply being characterized as a natural monopoly with large scale economies, whether consumers are given the choice to choose from readily available offers largely depends on under what conditions competitors can access the incumbent operators' grid. Competitive prices can only be offered to end users if the conditions are given to the alternative service providers' new entrants - to efficiently deliver services. Still, a lot will depend on enforcement. In the UK, in Hungary and in the EU different regimes are in place. However, the target is the same: low prices, consumer choices and efficient use of resources. Is this possible? What is the tool to achieve this? How can law and economics be supportive? Is there an access pricing regime that applies to all, as in telecommunications? This is piece aims to find the answer.