Private Investments in the European Water Sector: A Country Overview Based on Utilities’ Performance

This book is addressed to water stakeholders, primarily Water Economic Regulators (WERs) and investors. It examines the performance of a selected panel of privately owned utilities in the European water sector with the primary aim of assessing the industry’s appeal to private investors. This includes analyzing trends in rates of return, and identifying key drivers such as profitability, rates of return, and financial leverage. Additionally, the report delineates the risk profiles of the selected countries. The observed measures also help identify the impact of certain institutional variables, including country characteristics and water governance structures, by clustering countries based on the presence of an independent national regulator. Furthermore, the scope of operation is examined, differentiating between companies that offer only water services and those that operate under an integrated business model encompassing both water and wastewater management. The selected panel comprises 32 entities operating in 10 countries, serving approximately 50.5 million inhabitants, which represents around 10% of the combined population of Europe, England, and Wales. Given that a significant portion of the European population is served by municipalities or state-owned companies, this rate can be considered fairly representative.