r example in Bavaria, one of Germany's 16 Länder, there are over 3 000 municipal water works. In the United Kingdom, arrangements include private water companies, corporatised public provision and provision by a government department. In INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 5. THE IMPACTS OF CHANGE ON THE LONG-TERM FUTURE DEMAND FOR WATER SECTOR INFRASTRUCTURE Italy there have begun to be changes to the public provision of water services, partly brought about by the Water Framework Directive. Private water concessions to consortia (often headed by the big international water undertakings) by municipal authorities are being implemented under a 1994 law. In addition, corporatised municipal enterprises are beginning to operate beyond their own home territories. The trend in private sector participation has gradually increased over the past decade in southern member states (EuroMarket, 2005). The predominant model of water supply and sanitation, not only in Europe, is in one form or another of state-owned utilities fulfilling that function. Less than 10% of all people globally get their water from privatised or part-privatised businesses (SAM, 2004). Overall in Europe 48% of the population is served by water supply systems under public management, 15% by public water companies (Germany and the Netherlands), 20% by delegated private management (mostly France and Germany) and only 1% by direct private management (England and Wales) (Bakker, 2005). Throughout Europe water tariffs have been increasing at between 2% and 6% per annum (OECD, 2001) although the levels of water prices are lower than the cost recovery levels. There are few examples where tariff structures have been designed to aid demand management (Roth, 2001) and often those few include substantial subsidies. Although over the last 10 to 15 years there have been moves to better cost recovery, it is only in the case of domestic use that any real improvement has been made, partly supported by g