Ofwat Has A Lot To Learn From US Water Regulation
The financial problems facing Thames Water due to high debt could have been avoided with proper regulation by Ofwat (“Thames Water chief in sudden departure amid struggle with £14bn debt pile”, Report, FT.com, June 28). The US has a long history of regulating investor-owned public utilities of electricity, natural gas and water. However, US regulators have always had a full authority over the balance sheets, including to set capital structure and to preapprove additions to capital investment. US regulators can put a cap on “debt” levels as well as equity levels. Ofwat should assert or be given the explicit authority to do the same.
Branko Terzic
Managing Director, Branko Terzic & Associates, Former Commissioner, Federal Energy Regulatory Commission, Washington, US
Original Published at: The Financial Times London
https://www.ft.com/content/2911d2de-b7d2-4867-929f-d135184c653a
Ofwat Website:
The Honorable Branko Terzic is a former Commissioner on the U.S. Federal Energy Regulatory Commission and State of Wisconsin Public Service Commission, in addition to energy industry experience was a US Army Reserve Foreign Area Officer ( FAO) for Eastern Europe (1979-1990). He hold a BS Engineering and honorary Doctor of Sciences in Engineering (h.c.) both from the University of Wisconsin- Milwaukee.
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