Thames Water (TW) is in the news a lot at the moment so I thought I would offer an ex-regulator's analysis of what seems to be going on. TW is a classic monopoly (apart from when it supplies business consumers). It has guaranteed revenues and zero competition. Its regulator is legally required to set its prices so that it can cover its 'efficient' costs and make a reasonable profit for its shareholders. It would take an impressive amount of mismanagement for it to lose money.
Excellent overview and critique of how the current situation arose. Maybe Martin could expand it by adding an overview of how the water supply sector works in comparable countries - my understanding is that England is an outlier in the 'purity' of our privatisation model.
Excellent overview and critique of how the current situation arose. Maybe Martin could expand it by adding an overview of how the water supply sector works in comparable countries - my understanding is that England is an outlier in the 'purity' of our privatisation model.
That's stretching my knowledge a bit too far - sorry!