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The water utility sector is a network industry. The most important characteristics – such as congestion, high share of fixed costs, the fact, that the decisions of present generation highly affect the future generations, and also the legal framework, that the residential consumers can not be excluded from consumption – define the basic issues of competition and regulation. The basic issue of the sector is how would it be possible to build up the financial reserves - missing for a long time - for renew the infrustructure and also comply with the increasing quality requirements of the European Union.

The study has been published in Competition and Regulation 2010 (editor.:Valentiny Pál, Kiss Ferenc László, Nagy Csongor István).