The Regulation of Water Services in the EU Internal Market

Abstract

Water is an exhaustible natural resource. Access to clean, safe and affordable water must be managed nowadays not only to avoid any unnecessary use of water, but also allow for continuous supply of such an important factor of public well-being. In recent years, water-related activities acquired significant economic characteristics and competition in the sector has become a reality in several EU Member States. Whereas the water sector comes by now under the broader category of services of general (economic) interest, the discussion on water within the EU has focused for the most part on the environmental aspects of the sector. This paper focuses on the regulation of access to and distribution of water as yet another service sector with significant public good characteristics. After a discussion of the EU regulatory framework regarding the water sector and the relevance for the water sector of the current regulation of services of general interest (SGI) within the EU, the paper examines the application of the EU free movement, state aid and government procurement rules to the water sector.