Abstract

The main of this work is to provide a critical assessment of the economic regulation and governance structure in the Italian water industry after the recent reforms. Through a detailed analysis of the economic literature, of the technological and economic features of the sector as well as of the new rules recently passed by Parliament, we argue that, in the case of the Italian water industry, the benefits brought about by competition for the market are likely to have been overestimated by most commentators and policy-makers. In particular, the absence of a clear regulatory framework might be considered the real weakness of the regulatory arrangements that has been characterizing the Italian water sector in the recent period.