Policy framework: The Netherlands

Organizational structure. In the Netherlands the drinking water supply is primarily considered to be the government’s responsibility, although it is organized as a public utility. While countries like France and the United Kingdom have opted for privatization of the water supply, the Netherlands still leaves open a supervisory role for public authorities. the general opinion of both the government and the water supply companies themselves is that they disapprove of privatization in the water supply sector. the Dutch government officially declared itself not to be a proponent of full privatization of water supply companies (VROM, 1993). This statement is motivated by the conflict the government sees between the interests of consumers and those of shareholders. the consumers’ interests lie in having a guaranteed delivery of water at a reasonable price level; public health interests lie in having drinking water of good quality that meets the drinking water standards. Both of these require a drinking water price based on actual costs. the Dutch solution, which takes the form of commercial operating companies with public authorities as majority shareholders, is considered by both the government and the water supply sector to be an adequate organizational structure to meet these requirements.