Skip navigation

The privatised water Industry in the UK. An ATM for investors

The privatised water Industry in the UK. An ATM for investors

Yearwood, Karol (2018) The privatised water Industry in the UK. An ATM for investors. [Working Paper]

[img]
Preview
PDF (Published Working Paper)
21097 YEARWOOD_The_Privatised_Water_Industry_in_the_UK_2018.pdf - Published Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (1MB) | Preview

Abstract

This paper aims to critically evaluate the privatised water & sewage industry in England. We find that the public-owned sector in Scotland delivers the service just as efficiently, albeit at a lower cost to consumers. Our econometric analysis suggests that the 40% increase in real household bills since privatisation was mainly driven by continuously growing interest payments on debt, contrary to the regulator attributing them to growing costs and investments. Finally, we show that the skyrocketing debt levels are primarily the result of disproportionate dividend pay-outs, which exceeded the privatised companies’ cash balances in all but one year since 1989. We conclude that the way the industry operates may no longer be sustainable and seems to disadvantage consumers greatly without their knowledge, as there is a fog of misleading statements by the companies and the regulator.

Item Type: Working Paper
Uncontrolled Keywords: Water, Privatisation
Subjects: H Social Sciences > HD Industries. Land use. Labor
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Public Services International Research Unit (PSIRU)
Faculty of Business > Centre for Work and Employment Research (CREW) > Public Services International Research Unit (PSIRU)
Related URLs:
Last Modified: 05 Oct 2018 14:57
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
URI: http://gala.gre.ac.uk/id/eprint/21097

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics