Yes it should be efficient and suitable for using water directly for example in desalination small units, however its not recommended for water distribution system as chlorination is better for protect water from coming pollutant. Generally the efficiency of UV has limitation with high turbidity of water and high bacterial population growth (bio film), also a function of time exposure and UV light intensity are the main considering factor .
I agree with Dr. Salem that the limitation could be the absence of residual for distribution system. In addition UV is always considered a disinfection for surfaces as it can be used in Laminar flows and in surgical rooms, so high turbidity water will hinder efficient disinfection. Another disadvantage of its use is the health hazard of the workers due to the direct exposure of UV, as it affect the DNA and may cause skin hazards.