Principles of good supervision and The Regulation of the Dutch Drinking Water Sector

Saskia Lavrijssen, Blanka Vitez

    Research output: Contribution to journalArticleScientificpeer-review

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    Abstract

    In March 2014, the OECD issued a report in which it indicated that the Netherlands “has an excellent track record on water management in several areas”. The OECD mentions for example that the Netherlands has developed a “strong economy and robust water industry”, this despite that 55% of the Netherlands’ territory is below sea level. However, the OECD also concluded that Dutch water governance “relies on a system of many checks and balances … [and] that system presents some limitations.” In response to the conclusion of the OECD, this article discusses the current framework of economic regulation of the Dutch drinking water sector. The article develops a normative framework to assess whether the current organisation of economic regulation is adequate. The assessment examines to which extent the principles of good regulation are observed by economic regulation of the drinking water sector.
    It is concluded that the Dutch framework of economic regulation of the drinking water sector displays several weaknesses in light of the principles of good regulation. In particular, the principles of transparency and independency need better observance. As a result the protection of the interests of the users of drinking water is at stake. This article ends with some recommendations to enhance the quality of economic regulation of the Dutch drinking water sector.
    Original languageEnglish
    Pages (from-to)219
    Number of pages255
    JournalCompetition and Regulation in Network Industries
    Volume16
    Issue number3
    Publication statusPublished - 15 Dec 2015

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