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Human Rights and the Regulation of Privatized Essential Services

The privatization of essential services such as water and electricity has raised a number of questions with respect to the role of the state and how these services should be regulated. An obligation to regulate from the perspective of human rights law may clash with the right to regulate within certain limits under international investment law. The importance of these services for society requires the adoption of positive protection measures that guarantee their quality and universal accessibility. At the same time, the rights of investors under bilateral investment treaties need to be respected. However, under international law it is not self evident that human rights concerns will trump the legal obligations flowing from bilateral investment treaties. A way to reconcile these potentially competing legal obligations is required under international law, and may lead to the development of what may be called ‘international public service law’.