30/04/09
The final report of the Cave Review contains a variety of recommendations concerned with the development of both competition (as expected) and regulation (more surprising, but only on first inspection).
Professor Cave limits the role of competition to the retail function – begun in Scotland a year ago – and areas where experiments can be conducted without interfering with the basic business of providing water and sewerage services.
Most competition recommendations are focused on provision of new infrastructure and do not impinge on existing operations and their financing.
Intriguing regulatory proposals highlight incentives for innovation and improved customer service, the very objectives competition itself is meant to support and promote.
The industry will be studying the Cave report carefully, with the aim of ensuring that follow-on activities by government and Ofwat work for the benefit of all customers.
The Cave Review was jointly commissioned by Defra and the Treasury.
Cave review of competition and innovation in water markets
Contact: Jeanne Golay
