General industry Flashcards
What are the 3 main pillars of the water industry?
1) Water generation
Process: after abstraction, water is treated to meet quality and safety standards
**2) Water Distribution **
Process: water piped directly to consumers within company’s region
**3) Wastewater Management **
Wastewater is collected via sewage systems and transported to wastewater treatment plants
There are around 17 key water companies with 11 of them being regional monopolies. What are these 11?
- Thames Water
- Severn Trent water (listed)
- United Utilities (listed)
- Anglian Water
- Yorkshire Water
- Southern Water
- South West Water
- Wessex Water
- Northumbrian Water
- Welsh Water
- Portsmouth Water
Describe the regulatory framework in the water industry.
Ofwat regulates water companies to ensure fair pricing, quality of service and prevents abuse of monopoly power
The Environment Agency and Natural Resources Wales ensures that water companies meet environmental regulations and manage water resources sustainability.
What is the general structure of the UK electricity market?
- Generation
- Transmission
(Bulk transfer of electricity over long distances) - Distribution
(Delivering electricity from local substations to residential, commercial and industrial customers) - End User
Who are some of the main energy generators?
Who are some of the main energy generators?
Who are the 6 main distribution network operators (DNOs) in the energy sector
Who are some of the main retail suppliers in the energy sector?
What is the structure of the gas industry?
What do you think are the biggest challenges facing the water industry today?
- Aged and poor quality infrastructure
- Balancing affordability, investment and shareholder returns
- wastewater management and quality standards (sewage discharge into rivers)
- Climate change impacts (eg extreme weather patterns and greater variability in rainfall)
- Public trust and perception
- Water scarcity and demand management
- Financial strain and over leverage
What is a capital investment plan?
A strategic roadmap that outlines a company’s long term investments in physical assets
- regulatory checks
- Prioritize infrastructure upgrades
- incorporate climate resilience
- focus on operational efficiency
- risk assessment
-phased implementation
What trends do you foresee in the M&A space for water utilities
Distressed asset acquisitions
