The Emergence and Performance of the Bond Funded Water Company in the UK. The case of Glas Cymru

Abstract

The not-for-profit debt-funded and large scale outsourcing of Glas Cymru (GC) is unique in the England and Wales context, representing a fascinating case in water industry structure and regulation. This paper examines the sustainability, desirability and wider feasibility of the GC model, compared with other water industries within the EU in general, and private-equity funded water companies in England in particular. Whilst GC’s structure seems both suitable and desirable for its specific situation, research indicates that a particular set of circumstances surrounding GC’s creation including advantages of timing and political support from Welsh Assembly Government, may make widespread feasibility of such a structure unrealistic within current regulatory structures for the water industry.