A bill on the privatization of water pipes has been submitted to the Greek Parliament

The Greek government has submitted a bill to parliament that could pave the way for the privatization of water supply in Greece.

It was introduced with limited public consultation this week, days before the general election date was announced. The most important change is that the responsibilities for regulation and control of all public water supply and sanitation service providers in the country removed from the relevant ministry and assigned to an independent Energy Regulatory Authority (RAE)which is being renamed the Waste Management, Energy and Water Administration (RAAEF).

The problem arising from this change, as noted by the Greek opposition, is that the transfer of control over a public good such as water to the regulator only makes sense when the market for the provision of this good is privatized and liberalized. The regulatory body is not subject to government oversight and its actions are enforceable without any legal or expedient oversight by the competent ministry.

Critics point out that water privatization is unconstitutional and point to the successive decisions of the Council of State, Greece’s highest administrative court, which issued the relevant decision.

Minister of Environment and Energy Kostas Skrekas denies that the bill will lead to the privatization of water supply. “We do not want to privatize water. We are introducing a bill because state monopolies are poorly controlled, although they provide a very serious service to the health of the population,” the minister said.

“There are state monopolies, municipal monopolies that need to be controlled because they control the most valuable resource, which is water, which will be in short supply in the coming years due to climate change,” Skrekas added.

Opposition parties argue that the controversial bill would lead to the privatization of water supplies, a move that is typical of a government that is rabidly seeking to privatize state assets and outsource services through public-private partnerships and contractors.

The main opposition party, SYRIZA, said the bill would raise costs for households and businesses, and generate windfall profits for some entrepreneurs affiliated with New Democracy politicians. “It will limit everyone’s access to basic commodities like water.”

The PASOK Socialist Party said the bill’s ultimate goal is “to change who sets the price of such a valuable commodity, at the risk of seeing an unjustified increase in the cost of water.”

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