The Local Provision of Public Services: Municipal Capitalism, PPP’s Schemes and the Regulation Issues in Italy

The issue of the local provision of public services has becoming important in Italy due to several changes that have been implemented in the last years by the national government in the regulation of state owned companies and in the regulation of public services (or services of general economic interest). The regulatory role of national or local government and the increasing role played in some large companies managing important services have to be accurately discussed in order to reconcile efficiency of the companies with the need of properly represent the political orientations. Potential conflict of interests on one side but also the need to properly represent the interest of citizens, more than the interest of shareholders, are two issues that are discussed in the paper. A practical example of a small size Italian town is used in order to show the current situation in terms of regulations, planning of the service, pricing and management of the service in the most important sectors. Competition and public interest are not necessarily in conflict, but the whole setup must be reviewed.