Listening to the water industry proposals for 3% price increases each year above inflation (that would mean a 7% water price increase this year) made me think we were living in the Soviet Union circa 1960 under a system of state planning.
The rate of price increase is unacceptable and not necessary. Water is a very abundant resource, especially in a summer like the present cold wet one.If we introduced full competition, including the right to use the existing pipes as a common carriage system, the alleged shortage of supply and the ever rising prices would vanish.
What has the government to lose? Why doesn’t it do this? To those who say it is a natural monopoly I say then remvoing the legal and regulatory parts of the monopoly will make no difference and could not possibly do any damage. I also say they are wrong. Water is no more a monopoly than the supply of oil, and has the advantage that you find it everywhere, unlike hydrocarbons.
If we allowed others to help collect it and clean it we would have lower prices and more of it. Let’s just do it.