The UK and French Water Sectors: Different models, converging needs, high growth ahead

Research evidence excerpt

The UK and French Water Sectors: Different models, converging needs, high growth ahead

19 June 2026

European Utilities & Clean Energy

The UK and French Water Sectors: Different models, converging

needs, high growth ahead

In this report, we compare the water sectors in the UK and France, focusing on both the Bartlomiej Kubicki

+49 69 717 4418 regulatory framework and the operational performance of drinking water and wastewater

bartlomiej.kubicki@bernsteinsg.com systems. We find that, despite fundamentally different regulatory approaches, overall

operational performance in drinking water is broadly comparable at an aggregate level,

Thibault Dujardin, CFA although assessed through different metrics and reporting standards. In wastewater and

+33 1 58 98 59 16

thibault.dujardin@bernsteinsg.com storm overflow management, comparisons are more complex. The UK stands out for its

high level of transparency, rather than necessarily weaker underlying performance.

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Overview of main regulatory differences. In France there is no water regulator as such,

Gareth Williams as local authorities set water tariffs with the aim of covering the cost and quality of

+44 20 7762 5256

gareth.b.williams@bernsteinsg.com the service, while keeping it affordable for customers. Local authorities own the water

infrastructures and can delegate the management of water services to private water

companies, or manage it in-house (régie). The French water business model is based on an

agreement between a local authority and a private water company to deliver pre-specified

services and capex over the duration of a contract, for which the water company intends

to earn a return (ROCE, IRR). Traditionally, this is a capex-light business, with relatively

high returns but low margins.