Water Sector Regulation in France: A Complex Multi-Model and Multi-Level Regulatory Framework

Regulation can be described as the definition and implementation of rules setting the service general framework (service scope, technical characteristics, and service provision conditions), the stakeholders’ roles and missions, and how the various stakeholders should interact with one another. Regulation also specifies how the cost of the service is to be financed.

While regulation always pursues the same objective, there are several regulatory models deriving from different legal traditions and taking into account national institutional contexts. Among the different European regulatory models in force in the water sector, it is striking to notice that three different regulatory models apply to the French situation. This partly explains the complexity, fragmentation, and specificities of the regulatory framework of the French water sector. In such an institutional context, the French regulation framework is a mix of several regulation models. Self-regulation applies to water and sanitation services managed by public operators. Contractual regulation applies to services managed by private operators, and soft sunshine regulation applies to all services across the board.

Building upon the OECD analytical work, the water roles and responsibilities in France as well as the French regulation framework are assessed and described. As a result, it appears that the French regulatory model is a fragmented and complex multi-model and multi-level framework involving stakeholders at the national and local levels, each of them fulfilling specific regulation functions and powers. The historic and institutional construction of the French water sector regulation has resulted in a highly fragmented framework, which induces complex coordination and governance mechanisms and challenges in order to ensure qualitative and efficient regulation. As a result, efforts to enhance coordination and to rationalise the overall regulatory framework may be required in France to ensure better regulation, efficiency, effectiveness, and accountability of water policy and water utilities.