British regulatory agency Ofwat has recommended opening up the water industry in order to reduce prices and increase competition in the water market. Ofwat says that the water industry lags behind other industries and markets that are experiencing a consumer revolution in terms of options and availability. In water, regional monopolies and oligopolies have near exclusive control of the market. The savings to the consumer would be modest, about eight pounds per household. A corresponding benefit would be increased service quality due to increased competition, as water companies try to retain long-term customers who have a valid alternative option for the first time.

Water market overhaul proposed by Ofwat – BBC News