The question non longer is if more competition should be introduced in the German water and sewerage sector. The issue rather is what kind of competition ought to be implemented. There are mainly three different approaches: Competition in the Market; Competition for the Market and the introduction of a system of comparative efficiency. None of these approaches seem to solely fit for the fragmented structure of the German market. Therefore it is suggested to choose different regulatory approaches depending on the size of the company. Whereas incentives should be created for smaller companies to merge the big ones should already start with a system of comparative efficiency. In the longer run the merged companies also ought to integrate into this regulatory system.
Water Sewerage Comparative Efficiency Germany Regulation