Aggregation in the Portuguese Water Industry: The Case of Retail Service Operators

Abstract

The regional aggregation of water service operators has been considered a possible solution for improving these services, for enhanced service quality and efficiency in the performance of the entities responsible for providing the service. This paper seeks to study the aggregations that have occurred in Portugal in the last decade, in addition to review some of the most recent and relevant literature published on the subject. Such recent aggregation differs significantly from first and second‑generation aggregation that occurred between the late 1980s and mid‑2000s, being essentially aimed at (i) integrating only water distribution operators (i.e. direct providers, also known as retail operators), and (ii) integrating smaller and less populated territories.