Water Company/Utilities
The UK Government are considering a relaxation of the restrictions on the merger of individual water companies.
The rules have ensured the formation of Super Utility Company’s was limited and that some form of competition remained?
Whilst it has always been accepted by all including Department of Food and Rural Affairs (DEFRA) a monopoly of some form cannot be prevented given the industry profile, there must be significant worries over the amalgamation/merger of the present utilities.
The larger utilities are in a position to move quickly in any acquisition even in the present economic climate. With the Brown government clearly on the back foot something must be put in place to ensure these already high profit and in some cases main land Europe based HQ large companies do not become multinational in their approach to what is basically a free commodity (rainwater) which randomly lands in the UK.
Plainly there is nothing to stop them selling the water to the highest bidder under EU rules, so the South of France or elsewhere could benefit from British water. In effect the UK could have enough water to service its needs yet suffer from a Utility company profit driven drought.
Whilst it pains me to say it if ever a British utility should be nationalised it is the water company’s.
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