Privatisation and untoward consequences in water services: the regulator’s role
Utilities were privatised:-
to enable them to finance investment outside public expenditure controls,
to improve choice for customers through greater competition, and
to harness private enterprise to increase efficiency through incentive regulation.
A regulator (Ofwat) was appointed, independent of Ministers, with statutory duties to secure
that regulated companies carry out their legal duties, and can finance them, and to protect
customers from abuse of monopoly power.