A controversial government bill in Finland aims to prevent private investors from acquiring a controlling stake in water supply facilities, sparking fierce debate between ruling and opposition parties. The bill allows investors to acquire up to 49.9% of shares in such facilities, while also emphasizing that fees should cover maintenance costs and offer a “reasonable” return on capital.
Opposition lawmaker Pinja Perholehto expressed concerns about profit-driven investor expectations potentially overshadowing the needs of municipal residents. Meanwhile, Center party member Petri Honkonen cited a previous electricity distribution divestment as a cautionary tale against foreign investment.
Ruling-party members argue that public ownership will be reinforced by the bill, promoting control and organization of water supply utilities. Proponents of the bill highlight the need for regulatory tightening despite allowing minority outside ownership. Professor Petri Kuoppamäki warns of potential fee hikes if private investors influence decision-making through shareholder agreements.
The bill aims to balance municipal sovereignty with regulatory oversight in water supply management, highlighting the complexities of public vs. private ownership in this natural monopoly industry.
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