1Restructuring of public water utilities: A case study from Norrköping in Sweden

The Swedish Public Water and Wastewater Plant Act clearly states that it is a municipal responsibility to provide water supply and sewerage disposal services for the inhabitants. As a result, Sweden has a long tradition of public provision of water and sanitation services. A provision considered very effective and competitive by international comparison. However, as it has become increasingly difficult for Swedish municipalities to finance their operations and investments, a need to reduce the public sector and increase its efficiency has become apparent. Municipalities have therefore started to review their operations, and in some cases, this has resulted in privatisation of different public sector activities. During the 1990s, corporation attempts intensified in the water and sanitation sector. Currently about 35 out of 290 municipalities in Sweden have chosen to transfer their public water supply and sewerage works into municipal limited companies. Furthermore, six municipalities provide water and sanitation services through delegated management options. However, although the law is formally open to full privatisation efforts, only one municipality has taken advantage of this. In 2000, Norrköping municipality sold all of the shares in its multi-utility company Norrköping Environment & Energy Company to the privately owned energy company Sydkraft. The municipality’s water supply an