| Comparing the performance of water and sanitation service providers (utilities) is needed, because the sector offers limited scope for direct competition (natural monopoly). Firms operating in competitive markets are under constant pressure to out perform each other. Water utilities are often sheltered from this pressure, and it frequently shows: some utilities are on a sustained improvement track, but many others keep falling further behind best practice. Benchmarking the performance of utilities allows to simulate competition, establish realistic targets for improvement and create pressure to catch up with better utilities. Information on benchmarks for water and sanitation utilities is provided by the International Benchmarking Network for Water and Sanitation Utilities.[16] |
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