Editing Public utility (section)

==By country==

=== Kazakhstan ===
Public utilities in [[Kazakhstan]] include heating, water supply, sewerage, electricity and communications systems.

==== Heating systems ====
* They are mainly represented by centralized networks, with the exception of some rural areas.
* Various types of fuels are used, including coal, natural gas and fuel oil.
* Many systems need to be upgraded to increase their efficiency and reduce their environmental impact.

==== Water supply systems ====
* They provide the population with drinking and industrial water.
* The sources of water are rivers, lakes and groundwater.
* The level of water quality in some regions is of concern.
* It is necessary to increase the efficiency of water resources use and improve water quality.

==== Sewerage systems ====
* Wastewater is diverted from residential and industrial facilities.
* The level of wastewater treatment in some regions does not meet modern standards.
* Sewerage systems need to be expanded and upgraded to protect the environment.

==== Power supply ====
* It is provided by power plants running on various types of fuels, including coal, natural gas, hydropower and nuclear energy.
* There are problems with power outages, especially in rural areas.
* It is necessary to modernize the power grid and increase their efficiency.
* The heating, water supply and sewerage systems of Kazakhstan, although functioning, require urgent modernization. The technical capabilities of these networks are becoming outdated, which leads to an increase in operating costs and a decrease in their reliability.

A report by the [[European Bank for Reconstruction and Development]] (EBRD) notes that additional investments are needed to improve the efficiency and reliability of these systems.<ref name=":2">{{Cite journal |title=Commercialising the utilities sector in Kazakhstan |url=https://www.ebrd.com/documents/municipal-infrastructure/commercialising-the-utilities-sector-in-kazakhstan.pdf?blobnocache=true |journal=European Bank for Reconstruction and Development}}</ref>

The analysis conducted by the EBRD revealed a number of problems faced by heating, water supply and sewerage systems in Kazakhstan.
* Outdated technologies: In many cases, the infrastructure has exhausted its resource and needs to be replaced.
* Low energy efficiency: Existing systems consume a lot of energy, which leads to unjustified costs.
* Unreliability: Worn-out networks often fail, which leads to interruptions in the supply of water and heat, as well as leaks.

The report also provides examples of cities where networks are being upgraded with the support of the EBRD. These projects demonstrate how the introduction of modern technologies can improve the efficiency, reliability and environmental friendliness of heating, water supply and sewerage systems.

Upgrading infrastructure is not just a matter of convenience. It is of vital importance for public health, environmental protection and ensuring the sustainable development of the economy of Kazakhstan.

In most cases, public utilities in Kazakhstan are state-owned, which means that their activities are directly regulated by akimats. This creates a system with an administrative nature of relations, where the authorities have the authority to issue mandatory instructions for these companies.

===== The influence of the state on the activity =====
Proponents of such a system emphasize that it allows the authorities to directly influence the commercial activities of public utilities, ensuring their compliance with state interests. This can be expressed in:
* Tariff control: Akimats can set tariffs for housing and communal services, making them accessible to the public.
* Ensuring the quality of services: The State can influence the standards of service by ensuring the provision of public services of appropriate quality.
* Implementation of social programs: Public utilities can participate in social programs aimed at supporting vulnerable segments of the population.

===== Limitations of State control =====
However, such a system has its drawbacks. Excessive government intervention can lead to:
* Reduced efficiency: Bureaucratic procedures and restrictions in decision-making can slow down the work of enterprises and hinder the introduction of innovations.
* Unreasonable expenses: Administrative barriers and inefficient management can lead to an increase in inappropriate expenses.
* Limiting investments: The uncertainty of government policy and the risks of interference from akimats may deter potential investors.

Resource efficiency:

Despite these limitations, utilities within the framework of this system can demonstrate high efficiency in the use of labor resources and management costs.<ref name=":2" />

Residents of Kazakhstan receive water, sewerage and heating from companies recognized by the state as natural monopolies. This means that there is no competition in these areas, and tariffs are set by a special state body – the Committee for Regulation of Natural Monopolies, Competition and Consumer Protection (CRNM and CP).<ref>{{Cite web |title=О естественных монополиях - ИПС "Әділет" |url=https://adilet.zan.kz/rus/docs/Z980000272_ |access-date=2024-04-26 |website=adilet.zan.kz}}</ref><ref>{{Cite web |title=Об утверждении Положения о Комитете по регулированию естественных монополий, защите конкуренции и прав потребителей Министерства национальной экономики Республики Казахстан и признании утратившими силу некоторых приказов Министра национальной экономики Республики Казахстан - ИПС "Әділет" |url=https://adilet.zan.kz/rus/docs/G17NT000153 |access-date=2024-04-26 |website=adilet.zan.kz}}</ref>

In order to ensure the smooth operation of public utilities, the state also controls the investment programs of monopolistic companies. This is handled by the Committee on Construction and Housing and Communal Services. Such a system allows you to regulate prices for utilities and direct investments to infrastructure development.<ref>{{Cite web |title=Об утверждении Положения республиканского государственного учреждения "Комитет по делам строительства и жилищно-коммунального хозяйства Министерства по инвестициям и развитию Республики Казахстан" - ИПС "Әділет" |url=https://adilet.zan.kz/rus/docs/G17IL000128 |access-date=2024-04-26 |website=adilet.zan.kz}}</ref> However, this system also has its disadvantages. For example, the lack of competition can lead to a decrease in the efficiency of monopolistic companies.

To protect the interests of consumers from unjustified overpricing and substandard service, there are special regulatory bodies whose powers are regulated by the Law "On Natural Monopolies" and other regulatory acts.

Main functions:
* Investment promotion: Development of tariff calculation methods that are attractive to both consumers and private investors interested in investing in the modernization of public infrastructure.<ref>{{Cite web |title=Об утверждении Методики расчета тарифа с учетом стимулирующих методов тарифообразования - ИПС "Әділет" |url=https://adilet.zan.kz/rus/docs/V1700016212 |access-date=2024-04-26 |website=adilet.zan.kz}}</ref>
* Control over the use of funds from IFIs: Determining the specifics of regulating the activities of natural monopolies that attract financing from international financial institutions (IFIs). This allows you to track the intended use of borrowed funds.<ref>{{Cite web |title=Об утверждении Особого порядка регулирования деятельности субъектов естественных монополий, привлекающих займы международных финансовых организаций и входящих в перечень субъектов естественных монополий, привлекающих займы международных финансовых организаций - ИПС "Әділет" |url=https://adilet.zan.kz/rus/docs/V1500012506 |access-date=2024-04-26 |website=adilet.zan.kz}}</ref>
* Formation of a transparent tariff policy: Establishment of rules obliging monopolistic companies to publicly disclose information about tariffs, as well as infrastructure development plans.<ref>{{Cite web |title=Об утверждении Правил утверждения тарифов (цен, ставок сборов) и тарифных смет на регулируемые услуги (товары, работы) субъектов естественных монополий - ИПС "Әділет" |url=https://adilet.zan.kz/rus/docs/V1300008642 |access-date=2024-04-26 |website=adilet.zan.kz}}</ref>
* Analysis of investment programs: Evaluation of investment programs of natural monopolies, approval of development plans and control over their implementation.<ref>{{Cite web |title=Об утверждении Правил утверждения инвестиционных программ (проектов) субъекта естественной монополии, их корректировки, а также проведения анализа информации об их исполнении - ИПС "Әділет" |url=https://adilet.zan.kz/rus/docs/V1400010459 |access-date=2024-04-26 |website=adilet.zan.kz}}</ref>

Interaction at different levels:

It is important to note that the powers to regulate the activities of natural monopolies are distributed between federal and local authorities.  Effective coordination of their actions is necessary to ensure coordinated work and achieve common goals.

As a result, the activities of the regulatory authorities of natural monopolies are aimed at ensuring a balance between the interests of consumers, utility companies and the state.

==== The EBRD ====
2017 was marked by a new round of cooperation between Kazakhstan and the [[European Bank for Reconstruction and Development]] (EBRD). The parties signed a three-year agreement with the aim of working together to modernize the country's infrastructure.

As part of this agreement, the EBRD will allocate funds for the implementation of a number of important projects aimed at:
* Improving urban infrastructure: Upgrading water supply, sewerage, heating and other vital facilities will be a priority.
* Optimization of customs procedures: Joint efforts will be made to simplify customs processes, which should lead to stimulating trade and accelerating economic growth.

In addition to these two key areas, the EBRD will continue to support other initiatives aimed at improving the well-being of citizens of Kazakhstan.<ref name=":2" />

===Azerbaijan===
{{main|Utilities in Azerbaijan}}

===Chad===
{{main|Utilities in Chad}}

===Colombia===
{{main|Public utilities in Colombia}}

===Turkey===
{{see also|Utilities in Istanbul}}

===United Kingdom and Ireland===
In the [[United Kingdom]] and [[Ireland]], the state, private firms, and charities ran the traditional public utilities. For instance, the [[Sanitary District]]s were established in [[England and Wales]] in 1875 and in Ireland in 1878.{{Citation needed|reason=statement\paragraph should be supported by citation to a reliable source. See https://en.wikipedia.org/wiki/Wikipedia:Reliable_sources| date=May 2021}}

The term can refer to the set of services provided by various organizations that are used in everyday life by the public, such as: [[electricity generation]], [[electricity retailing]], [[Electric utility|electricity]] supplies, [[Natural gas utility|natural gas]] supplies, [[Water utility|water]] supplies, [[Sewage treatment|sewage works]], [[Water industry|sewage]] systems and [[broadband]] [[internet]] services.<ref>{{cite web |url=http://www.uk250.co.uk/Utilities/ |title=Utilities Websites |publisher=Uk250.co.uk |access-date=2011-10-11 |url-status=live |archive-url=https://web.archive.org/web/20111104133007/http://www.uk250.co.uk/Utilities/ |archive-date=2011-11-04 }}</ref> They are regulated by [[Ofgem]], [[Ofwat]], [[Ofcom]], the [[Water Industry Commission for Scotland]] and the [[List of regulators in the United Kingdom#Utilities|Utility Regulator]] in the United Kingdom, and the [[Commission for Regulation of Utilities]] and the [[Commission for Communications Regulation]] in the Republic of Ireland. Disabled community transport services may occasionally be included within the definition. They were mostly privatised in the UK during the 1980s.

===United States===
{{see also|Utilities of Seattle}}
The first public utility in the United States was a [[grist mill]] erected on [[Mother Brook]] in [[Dedham, Massachusetts]], in 1640.<ref name=growth/>

In the U.S., public utilities provide services at the consumer level, be it residential, commercial, or industrial consumer. Utilities, merchant power producers and very large consumers buy and sell bulk electricity at the wholesale level through a network of [[regional transmission organization]]s (RTO) and independent system operators (ISO) within one of three grids, the [[Eastern Interconnection]], the [[Texas Interconnection]], which is a single ISO, and the [[Western Interconnection]].{{citation needed|date=February 2017}}

U.S. utilities historically operated with a high degree of financial leverage and low interest coverage ratios compared to industrial companies. Investors accepted these credit characteristics because of the regulation of the industry and the belief that there was minimal bankruptcy risk because of the essential services they provide. In recent decades several high-profile utility company bankruptcies have challenged this perception.<ref>{{cite book |last1=Howe |first1=Jane Tripp |title=Handbook of Fixed Income Securities; Frank J. Fabozzi, editor |date=1997 |publisher=McGraw-Hill |location=New York NY |isbn=0-7863-1095-2 |pages=392–393 |edition=Fifth}}</ref>

====Monopoly vs. competition====
Public utilities were historically regarded as [[natural monopoly|natural monopolies]] because the infrastructure required to produce and deliver a product such as electricity or water is very expensive to build and maintain. Once assets such as power plants or transmission lines are in place, the cost of adding another customer is small, and duplication of facilities would be wasteful.<ref>{{cite book |last1=Tomain |first1=Joseph |last2=Cudahy |first2=Richard |title=Energy Law in a Nutshell |date=2004 |publisher=West Publishing Company |location=St. Paul, Minnesota |isbn=0-314-15058-7 |pages=120–121}}</ref> As a result, utilities were either government monopolies, or if investor-owned, [[regulation|regulated]] by a [[public utilities commission]].<ref name="merriam-webster1">{{cite web|title=Public utility - Definition|url=http://www.merriam-webster.com/dictionary/public%20utility|url-status=live|archive-url=https://web.archive.org/web/20111105062903/http://www.merriam-webster.com/dictionary/public%20utility|archive-date=2011-11-05|access-date=2011-10-11|publisher=Merriam-Webster Dictionary}}</ref><ref name="investorwords1">{{cite web|title=public utility definition|url=http://www.investorwords.com/3949/public_utility.html|url-status=live|archive-url=https://web.archive.org/web/20110928072215/http://www.investorwords.com/3949/public_utility.html|archive-date=2011-09-28|access-date=2011-10-11|publisher=Investorwords.com}}</ref>

In the electric utility industry, the monopoly approach began to change in the 1990s. In 1996, the [[Federal Energy Regulatory Commission]] (FERC) issued its [https://www.ferc.gov/industries-data/electric/industry-activities/open-access-transmission-tariff-oatt-reform/history-oatt-reform/order-no-888 Order No. 888], which mandated that electric utilities open access to their transmission systems to enhance competition and "functionally unbundle" their transmission service from their other operations. The order also promoted the role of an independent system operator to manage power flow on the electric grid.<ref>{{cite web |last1=Melvin |first1=Jasmin |title=Former FERC, DOE officials mull Texas, climate, transmission policy quandaries (28 Feb 2021) |url=https://www.spglobal.com/platts/en/market-insights/latest-news/electric-power/022621-former-ferc-doe-officials-mull-texas-climate-transmission-policy-quandaries |website=S&P Global Platts |date=26 February 2021 |access-date=15 May 2021}}</ref><ref>{{cite web |title=Order No. 888 |url=https://www.ferc.gov/industries-data/electric/industry-activities/open-access-transmission-tariff-oatt-reform/history-oatt-reform/order-no-888 |website=Federal Energy Regulatory Commission |access-date=14 May 2021}}</ref> Later, FERC Order No. 889 established an electronic information system called OASIS (open access same-time information system) which would give new users of transmission lines access to the same information available to the owner of the network.<ref>{{cite book |title=Tomain and Cudahy op cit |pages=278–279}}</ref> The result of these and other regulatory rulings was the eventual restructuring of the traditional monopoly-regulated regime to one in which all bulk power sellers could compete. A further step in industry restructuring, "customer choice", followed in some 19 states, giving retail electric customers the option to be served by non-utility retail power marketers.<ref>{{cite web |last1=Clark |first1=Doug |title=Electricity customer choice program participation examined (Nov, 5, 2019) |url=https://dailyenergyinsider.com/news/22704-electricity-customer-choice-program-participation-examined/ |website=Daily Energy Insider |date=5 November 2019 |access-date=14 May 2021}}</ref><ref>{{cite web |title=Can electric utility customers choose their electricity supplier? |url=https://www.eia.gov/tools/faqs/faq.php?id=627&t=3 |website=U.S. Energy Information Administration |access-date=14 May 2021}}</ref><ref>{{cite web |title=Participation in electricity customer choice programs has remained unchanged since 2013 |url=https://www.eia.gov/todayinenergy/detail.php?id=41853 |website=U.S. Energy Information Administration |access-date=14 May 2021}}</ref>

====Ownership structure====
Public utilities can be [[Privately held company|privately owned]] or [[State-owned enterprise|publicly owned]]. Publicly owned utilities include cooperative and municipal utilities. [[Municipal]] utilities may actually include territories outside of city limits or may not even serve the entire city. [[Utility cooperative|Cooperative utilities]] are owned by the customers they serve. They are usually found in [[rural]] areas. Publicly owned utilities are non-profit.{{citation needed|date=February 2017}} Private utilities, also called [[Investor-owned utility|investor-owned utilities]], are owned by [[investment|investors]],<ref>{{cite web|url=http://www.energyvortex.com/energydictionary/investor_owned_utility_(iou)__private_utility__private_power_company.html|title=investor-owned utility (IOU), private utility, private power company|website=www.energyvortex.com|access-date=8 May 2018|url-status=live|archive-url=https://web.archive.org/web/20170202010009/http://www.energyvortex.com/energydictionary/investor_owned_utility_%28iou%29__private_utility__private_power_company.html|archive-date=2 February 2017}}</ref><ref>{{cite web|url=http://www.utilityconnection.com/page2b.asp|title=Electric Utilities|website=www.utilityconnection.com|access-date=8 May 2018|url-status=live|archive-url=https://web.archive.org/web/20171027164945/http://www.utilityconnection.com/page2b.asp|archive-date=27 October 2017}}</ref><ref>{{cite web|url=https://www.forbes.com/sites/williampentland/2011/09/18/investor-owned-utilities-asleep-at-the-switch-or-above-the-law/|title=Investor-Owned Utilities: Asleep at the Switch or Above the Law?|first=William|last=Pentland|website=forbes.com|access-date=8 May 2018|url-status=live|archive-url=https://web.archive.org/web/20170729171942/https://www.forbes.com/sites/williampentland/2011/09/18/investor-owned-utilities-asleep-at-the-switch-or-above-the-law/|archive-date=29 July 2017}}</ref> and operate for profit, often referred to as a [[rate of return]].

====Regulation====
A [[public utilities commission]] is a governmental agency in a particular jurisdiction that regulates the commercial activities related to associated electric, [[natural gas]], telecommunications, water, railroad, rail transit, and/or passenger transportation companies. For example, the [[California Public Utilities Commission]] (CPUC)<ref name="Cpuc.ca.gov">{{cite web|date=2007-03-23|title=California Public Utilities Commission|url=http://www.cpuc.ca.gov/puc/|url-status=dead|archive-url=https://web.archive.org/web/20111010054840/http://www.cpuc.ca.gov/puc|archive-date=2011-10-10|access-date=2011-10-11|publisher=Cpuc.ca.gov}}</ref> and the [[Public Utility Commission of Texas]] regulate the utility companies in California and Texas, respectively, on behalf of their citizens and ratepayers (customers). These public utility commissions (PUCs) are typically composed of commissioners, who are appointed by their respective governors, and dedicated staff that implement and enforce rules and regulations, approve or deny rate increases, and monitor/report on relevant activities.<ref name="puc">{{cite web|url=http://www.puc.state.tx.us|title=Public Utilities Commission of Texas|website=Public Utilities Commission of Texas|access-date=17 February 2017|url-status=live|archive-url=https://web.archive.org/web/20120814230946/http://www.puc.state.tx.us/|archive-date=14 August 2012}}</ref>

Ratemaking practice in the U.S. holds that rates paid by a utility's customers should be set at a level which assures that the utility can provide reliable service at reasonable cost.<ref>{{cite journal |last1=Louiselle, Bruce M. and Heilman, Jane E. |title=The Case for the Use of an Appropriate Capital Structure in Utility Ratemaking: The General Rule Versus Minnesota. |journal=William Mitchell Law Review, Mitchell Hamline School of Law |date=1982 |volume=8 |issue=2 |page=426 |url=https://open.mitchellhamline.edu/cgi/viewcontent.cgi?article=2654&context=wmlr |access-date=12 May 2021}}</ref>

Over the years, various changes have dramatically re-shaped the mission and focus of many public utility commissions. Their focus has typically shifted from the up-front regulation of rates and services to the oversight of competitive marketplaces and enforcement of regulatory compliance.{{Citation needed|reason=statement\paragraph should be supported by citation to a reliable source. See https://en.wikipedia.org/wiki/Wikipedia:Reliable_sources| date=May 2021}}