Case Study: The Reform of the Water Sector in Italy in 2001–2011

Abstract

After 2001, the implementation of the water regulatory reform in Italy gradually accelerated. Local water regulatory authorities started awarding water franchises, which were often contracted with local government-owned “in house” water firms. In 2006, however, the reform processed abruptly terminated. A piece of legislation that implemented the EU Water Framework Directive also abrogated the 1994 water reform statute. In 2011, a referendum resulted in the removal of the legislative provisions that secured a remuneration of the capital invested by water firms. The adoption of the new regulatory system, together with the partial privatization of many water service providers, had resulted in some limited improvement to water industry performance, especially in terms of increased investments.