The OFT has issued recommendations aimed at encouraging increased competition and greater efficiency in the treatment of organic waste, following a market study requested by Ofwat. The OFT identified several barriers to competition relating to aspects of economic, environmental and planning regulation.  

The recommendations propose changes to the economic regulation of water and sewerage companies and recommend greater harmonisation of the environmental regimes applicable to sewage sludge and other organic waste.

The OFT has provisionally decided that a market investigation reference to the Competition Commission would not be appropriate at this time because it considers action by Ofwat and other government agencies would be better and more proportionate to address the regulatory barriers and competition concerns identified in the market study and is now consulting on this provisional decision.