Samenvatting

By law Dutch companies providing drinking water have to remain in public hands. In practice, public shareholders often fulfil their role in an informal fashion and without much engagement. They hardly intervene to protect the public interest. Public ownership is deemed to be crucial but its effects are difficult to measure. In this article, we examine the (ever changing and varying) institutional conditions of two public water companies and discuss whether these conditions enable public shareholders to properly control these companies. By comparing the opinions and experiences of directly involved respondents, this article aims to answer the question whether and how public shareholders are able to act as regulators. There are indications that this kind of regulation will not be efficient enough when needed, though those involved do not see this as a problem. This article offers suggestions for municipalities and provinces to reflect more on their role in the drinking water sector.