• United Kingdom: Change needed to encourage Competition in Organic Waste Treatment
On 22 September 2011, following a market study, the OFT issued recommendations designed to encourage
increased competition and greater efficiency in the treatment of organic waste.
In its market study into the treatment of organic waste in England and Wales the OFT identified a number
of barriers to competition related to aspects of economic, environmental and planning regulation, and
to the apparent corporate culture of some water and sewerage companies. The market study followed
a request to the OFT from the Water Services Regulation Authority (Ofwat) and the OFT has worked
closely with Ofwat throughout the market study. The report makes a range of recommendations aimed
at promoting competition, hence driving efficiency and innovation in the sector.
At the heart of the recommendations are proposed changes to the economic regulation of water
and sewerage companies to foster efficiency and help create a level playing field between them and
other suppliers of organic waste treatment. The study also recommends greater harmonisation of the
environmental regimes applicable to sewage sludge and other organic waste. In addition, the OFT
considers that planning policy proposals currently under consideration could contribute to greater
competition.
The OFT has provisionally decided that a market investigation reference to the Competition Commission
would not be appropriate at this time, as it considers that the regulatory barriers and distortions to
competition identified in this market study can be better and more proportionately addressed by Ofwat
and other government departments acting on the recommendations in this study. The OFT is now
consulting on this provisional decision and the consultation period will close on 27 October 2011.
See further: Summary of OFT’s work
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