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Intermediaries

Issues

Urban infrastructure in transition

Infrastructure systems for water supply and wastewater treatment and disposal are currently undergoing far-reaching transformation in Europe. Recent shifts in the way utility services are organised and provided – in response to regulatory, environmental, social and commercial pressures – are making utility markets more differentiated and services increasingly diverse. The pace and intensity of transformation varies greatly across Europe, but in all countries pressures for change are challenging the established ‘build-and-supply’ logic of infrastructure management and creating opportunities for new services.

 

Intermediary services

As interaction between water utility and consumer becomes more intense and complex, openings – or ‘spaces’ – are being created along the producer-consumer nexus. In this ‘intermediary space’ new services are being provided which can bridge the interests of water users and utilities. Examples of intermediary services include ‘shared savings’ packages for installing sustainable technologies, third-party maintenance of water and rainwater treatment facilities, customised technology upgrading programmes, information campaigns on how to cut water bills by using less water and environmental training programmes for consumers.

 

Intermediary organisations

Such intermediary services are being provided by a wide range of new and established organisations. These ‘intermediaries’ include commercial businesses, such as service contractors or environmental consultants, and public or non-profit-making organisations, such as consumer associations, environmental NGOs, technology innovation agencies and local authorities. Water utilities are themselves developing intermediary services as a way of reducing network stress, strengthening ties to their customers and exploring new market opportunities.

Earlier research suggests that intermediaries may hold the key to sustainable and cost-effective practices of urban water management and thus contribute to achieving the objectives of EU water policy as embodied in the Water Framework Directive.

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