Business Baron

Water & Sewerage Company

Water & Sewerage Company: Leakage, and a price review every five years. A water company has customers who cannot switch and a price it cannot set. Every five…

Leakage, and a price review every five years. Nobody can leave you. That is the whole problem.

A water company has customers who cannot switch and a price it cannot set. Every five years the regulator decides what may be charged and what has to be delivered, and the performance commitments that come with it are where the money is won and lost: leakage, pollution incidents, supply interruptions, the ones the public reads about. You cannot cut a household off for not paying, so bad debt sits in the accounts permanently, and one boil-water notice undoes ten years of quiet competence.

Setup costs
£40,000,000 to £300,000,000
Competition
Low
Category
Infrastructure & Utilities

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