Decorporatization of a municipal water utility: A case study from Italy

• Published in: Utilities policy 2019-04, Vol.57, p.43-47
• Main Authors: Landriani, Loris, Lepore, Luigi, D'Amore, Gabriella, Pozzoli, Stefano, Alvino, Federico
• Format: Article
• Language: English
• Subjects: Decorporatization; Social equity; Stakeholder; Water industry
• ISSN: 0957-1787; 1878-4356
• DOI: 10.1016/j.jup.2019.01.005

In Italy, debate over management forms of water utilities has continued for about thirty years, with legislation that periodically oscillates between the involvement of the private sector and keeping water management in public hands. Political and scientific discourse has focused considerable attention on ownership structure, following the ideological dichotomy of “public or private” rather than on models of governance, management, and performance. The literature finds divergent conclusions, which highlights the key role of country's institutional context in identifying the best management forms. The present work aims at providing policy and regulatory implications of decorporatization in Italy following the 2011 popular referendum through a case study of the first of its kind involving the ABC utility based in Naples. In particular, the role of primary stakeholders in the process is highlighted. •Decorporatization process does not affect performance in water utilities.•The debate on water utilities management is still ongoing in Italy.•After the de-corporatization process, workers and end-users benefit from a larger part of the public value that is generated.•The results confirm the strong link between public companies and politics.