Cartel Control Of Water Prices

In Germany the water supply is as Daseinsversorgung a part of the community’s self-administration that it ensured by Art.28 Abs.2 GG. The forms of organization of the water supply are versatile. Water suppliers can be regulated by private law as well as by public law. The water producer might choose legal solution, such as sign the offer water service by contract with client under the name of limited company. The publican organization is another choice which manage by civic department corporation, at this circumstance, the fees will be named as administration charge.The high and regionally differing prices for water in German however showed, that no efBcient cartel control of water prices has been done for a long time. Therefore, above un-equilibrium consequence lead to the price of water cleaning in German is high than other developed country, and the basis of water price consist between countries different region, especially in some county is triple size above average.Although the regulations for anti-competitive pricing practices have existed in the (German) Act Against Restraints of Competition (ARC) for a while, they have not made in impact on the field of water supply for decades-especially concerning the water charges under public law.The common perception is that the charges underlie just a municipal and not a cartel control. Act of Cartel is the private law which have no jurisdiction to supervise administration fee. And the administration fee only monitor by municipal surveillance. In the last decision,Niederbarnimer Wasserverband" the (German) Federal Supreme Court raised the question of public charges are responsive to cartel ones. The Court indicated in its obiter dictum the tendency that there is now cartel immunity for water charges. The result of judgement affect whole Germany society, the core of argue is that did Act of Cartel have jurisdiction to regulate and control administration charge.In reality the discrepancy in the water charges showed that a mere communal, municipal control of the charges is inefficient and insufficient. The municipal surveillance, responsible for water charges, usually does not take action, even though high dissapation and non cost-covering water prices suggest differently. Therefor water charges should be also controlled by the cartel. All federal and state cartel authorities are responsible for this. Especially the customers need to be protected by the cartel law. A parallel cartel law control of the water charges is therefore necessary. Otherwise, the price of service is not demand by market itself, and to protect the right of water consumer from monopoly, the Act of cartel needed to be finished.