Companies in the news: the water utilities

Once regarded as reliable investments, water companies have come under pressure from the regulator.

Water companies used to be reliable investments. Since they were privatised in 1989 they have cut costs and paid dividends to shareholders. But in recent years they have been squeezed by water regulator Ofwat.

Low bills for customers seem to be more important than dividends for shareholders, even though water firms need to attract investors to finance their businesses and protect their lenders from bearing too much risk.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.