Representing customers' interests: The case of the privatized water industry in England and Wales

Privatization has been one of the most important and controversial policy initiatives to emerge in the UK over the last decade. However, to date there has been little attempt to assess the impact of privatization on customers, despite the fact that much of the justification for the privatization of the public utilities was couched in terms of the benefits it would bring for customers. In the case of the water industry opportunities for competition are virtually non-existent, and the ten regional water authorities were privatized with their monopoly position intact. Consequently customers' interests have been represented and protected through new regulatory arrangements operated by the Office of Water Services. The purpose of this article is to offer some provisional assessment of the effectiveness of these new regulatory arrangements. In doing so, the article regards the model of private sector consumer sovereignty as inappropriate given the continued absence of competitive arrangements for the representation of customers' interests against some of the criteria currently being discussed in the development of more consumer-oriented approaches to the delivery of public services.