On January 30, UK water regulator Philip Fletcher finally
gave the go-ahead to Glas Cymru's purchase of the assets of Welsh
Water, in exchange for assuming £1.8 billion of the debt of Welsh
Water's owner, utilities group Hyder. Glas Cymru - "the people's
company" is to have what amounts to mutual status and become fully
debt financed. Technically, it will be owned by nobody but
guaranteed by 200 members - ranging from Welsh dignitaries to
hospitals - whose individual personal liability will be capped at
£1.
Fletcher's decision had been eagerly awaited by other water
companies, several of which are keen to restructure on similar
lines - a scheme to create a fully debt-financed company put
forward by Kelda, the owner of Yorkshire Water, was blocked by the
regulator last year.
The Glas financing uses various instruments that other water
companies are likely to pick up on. The company plans to...
