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CONTENTS                                                                               ULR  149









                                                       Vol. 16 Issue 4  2006/2007  ISSN 0960 2356



                                                       Opinion

                                         Martin Cave   Does the Competition Commission care enough about Competition?................. 151
                                 Warwich Business School
                                                       Articles

                       Water for Sale? Market Liberalisation  In Scotland, water services are provided for almost the whole population by Scottish Water,
                            and public sector regulation in  a vertically integrated public corporation established in 2002. Scottish Water replaced three
                                  Scottish Water Services  regional authorities, which in turn had taken over service provision following local government
                                        Sarah Hendry   reform in the 1990s – Scotland did not follow the English model of  divestiture of  the
                        Lecturer in Law, UNESCO Centre for  industry. Scottish Water is however subject to a form of economic regulation very similar to
                             Water Law, Policy and Science,  that in England and Wales. In April of this year, the Scottish Government and the economic
                                   University of Dundee  regulator opened up the monopoly market by allowing licensed suppliers to compete with
                                                       Scottish Water, in the delivery of retail services, to the non-household market. The move has
                                                       been described as being of global significance; it is consistent with the new options for
                                                       competition being developed in England, and with the way competition has operated in
                                                       other service industries globally. This article will examine these reforms, in the context of
                                                       the history and development of  Scottish Water; it will assess whether the claims made are
                                                       justified, and whether the Scottish model – both the system of economic regulation, and the
                                                       new licensing regime - can be of interest to other countries, given that the emphasis across
                                                       the globe is on delivering water services efficiently and effectively and within the public
                                                       sector. ................................................................................................................................................ 153

                      Levy Funding, State Influence and the  Two recent cases before the European Court provide important guidance on the extent to
                           Application of  Community Law  which levy funding should be characterised as financial support by the state. The first, Bayerische
                                       Gordon Downie   Rundfunk, examines the application of the EC public procurement rules to purchasing decisions
                            Shepherd and Wedderburn LLP  of levy funded bodies in the broadcasting sector. The second, Essent Noord, considers whether
                                                       levy funding arrangements in the energy market can amount to state aid.  Both cases appear
                                                       to signal a willingness to bring levy funded bodies within the notion of the state for Community
                                                       law purposes.  While both of  these cases concern different Community law regimes, they
                                                       appear to support the adoption of  a ‘functional’ approach to the issue of  levy funding. In
                                                       other words, and regardless of the fact that all of the financial burden may fall upon individual
                                                       customers, it is the function performed by a levy funding scheme that is of  paramount
                                                       importance in determining whether it is or is not a form of state financing. ...................163


                                 Edited by Peter Alexiadis  EU Current Survey
                                     and Simona Seikyte  European Union – Energy – Gas – Water – Transport – Air – Telecommunications
                       Gibson, Dunn & Crutcher, LLPBrussels  and Broadcasting .............................................................................................................................. 167



                                Edited by Philippa Young  UK Current Survey
                                       Solicitor, Oxford  Broadcasting – Energy – Electricity – Gas – Postal Services – Telecommunications –
                                                       Transport – Water ....................................................................................................................... 180
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