Water sector competition proposed

The water and sewerage industry should be opened up to competition, says regulator Ofwat. Competition was "severely limited by legislation" and had "not developed successfully", said Ofwat, the regulator in England and Wales. Opening up the sector would help it address climate change and water scarcity, as well as lower costs. Ofwat said it would challenge firms on price and service until competitof the syatem by whichion was "strong enough to protect customers".

The watchdog said competition would help "respond to the environmental challenge of water scarcity, which the government highlighted in its water strategy". It also said "markets could spur innovation in developing and making better use of water resources and more water efficiency services, supporting sustainable water abstraction". Read the BBC article here.

Think about the challenges the water industry faces. How could competiton help address these? What effect would greater competition have on customers? Would they be able to switch supplers easily? Would it lead to a reform of the way in which most customers now pay for their water?