The real problem with Britain’s water companies

The privatisation of in England and Wales, more than 30 years ago, now looks like a rip-off. Private-equity firms have loaded some water companies with debt. That helped juice their returns but left them financially fragile. While many water bosses made out like bandits, raw sewage was being dumped in rivers and on beaches. The companies, notably Thames Water, are now seen as the unacceptable face of Britain’s utility privatisations. Critics, backed by voters on the left and right, are calling for .This may be effective demagoguery, but it is wrong. In the aftermath of the water mess, consumers will end up paying more—not because of unscrupulous water-company bosses, but because of , the industry’s feeble, ill-advised regulator.