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Water privatization and regulation in England and Wales (Inglés)

In 1989, the United Kingdom embarked on one of the first modern privatizations in the water sector, selling assets under license and setting up an independent economic regulator. An important regulatory innovation is its use of price caps and yardstick competition. The author highlights two lessons from U.K. regulatory experience: effective price cap regulation has heavy information requirements, and the necessary data and analytical tools take time...
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