The global voice for consumers La voix des Consommateurs à travers le monde La voz global para la defensa de los consumidores

Cape Town competition workshop 2006 Sustainable access to water services: what role for competition? –Robin Simpson, senior policy adviser, Consumers International

Consumers International l Global federation of consumer organisations l 250 member organisations (mostly independent, some governmental)in 115 countries l Offices in London, Santiago, Accra, Kuala Lumpur

Representation Africa - membership of regulatory bodies: Burundi, Chad, Cameroon, Zambia France:commissions locales de l’eau Colombia/Costa Rica: public consultative hearings membership of national consultative bodies: Argentina: ETOSS (tripartite) and Kenya:government /civil society consultative committee on water Specific service issues: UK and OFWAT: Negotiating guaranteed standards Netherlands – scrutiny of public utility contract terms

Competition & access l Developing country W&S often not natural monopoly l Legal monopolies imposed: public and private l Liberalisation not = privatisation

Failures to serve poor l Sub –Saharan Africa – PSP ignored poorest 40% l African Water MDG slipping l African Sanitation MDG not till 2090.

PSP contracts l 45% now ‘distressed’ l 74% renegotated in Latin America 1985 – 2000 l 3 more major terminations in 2005, La Paz/El Alto, Dar, Buenos Aires

The poor pay more for water l Nairobi: vendor prices 10 x network prices l Caribbean: 100x differential l Network/non-network differentials greater than public/private

Legal exclusivity l By statute in public sector l By contract in private sector l Undermined by black market – people must drink!

Competition through tender l Price competition: W. Manila 43% decrease; Buenos Aires 27% l Both reversed l Conflict between price cuts and system extension l Uni-dimensional competition takes away policy trade offs

A case for published bids? l Multi-faceted competition: price, coverage, connection charges l Competition for universal service

demonopolisation l Manila l Dar-es- Salaam l Maharashtra l Legalisation of black market through licensing/3 rd party recognition l Recognition that where networks are not complete W&S are not natural monopolies

Thank you from Consumers International l