Sustainable access to water services : what role for competition?; the case of South Africa

Meeting: The Development Dimension of Competition Law and Policy : Economic Perspectives Workshop, 2 May 2006, Cape Town, ZAThis paper addresses the issue of sustainable safe drinking water and the role of competition. Before embarking on the issues relating to safe drinking water and competition, an understanding of the South African water sector is warranted. Thereafter the three pillars to create sustainable access to drinking water is considered; followed by some recommendations on the potential role of competition in the sustainability of safe drinking water. The paper established that the potential for the application of competition to the achievement of sustainable access to safe drinking water has been neglected. Accordingly, the paper suggests that the institutional arrangements in respect of quality need to make more allowance for competition due to the failure to meet coverage expectations and inefficient operations. Most important, the paper found that competition for the market is possible and desirable in metropolitan areas. In terms of non-metropolitan areas, the sustainability of the access of safe drinking water is still the sole responsibility of the government