South East Water Limited and Mid Kent Water Limited - A Report on the Completed Water Merger of South East Water Limited and Mid Kent Water Limited (Paperback)

Within its area of operation, each water company is a virtual monopoly. In the absence of market competition, a system of comparative competition (with Ofwat benchmarking each company's performance) aims to stimulate rivalry and help Ofwat ensure that regulated companies have an incentive too improve efficiency and service levels. This report finds that the merger of South East Water and Mid Kent Water reduces the ability of Ofwat to maintain competitive competition. The remedy proposed is not divestiture; instead it is a programme of price reduction.