Tony Wray of Severn Trent makes case for deregulation

Good interview and interesting piece in today’s Independent with Tony Wray, CEO of Severn Trent.

Sarah Arnott usefully sizes up the water industry conundrum;

Water is a surprisingly complex business. It is the most visceral of the utilities, and has massive capital investment requirements alongside no less than three sets of regulation – economic, environmental and public health.

I was also very taken with Tony Wray’s comment on the existing regulatory framework

At the moment, given the choice between sourcing low-cost water elsewhere or building a new reservoir, you build the reservoir,” Mr Wray says. “That way it goes on your ‘regulated asset base’ and you get to put your prices up and get a regulated rate of return on it. It’s a solution, but it’s not sustainable.

I’m sure there’s lots more scope for thinking like that right across the utilities, especially National Grid.

Leave a Reply