I don’t know what the economic model is in Canada but in the UK the various network monopolies (Water, Electricity & Gas, Rail) all use the same capital structure.
And because they are now so heavily geared (70-80% gearing) due to years of loading up on cheap debt, they are now at serious risk of failing as their cost of debt shoots up quickly.
Essentially, the UKs entire utility infrastructure is a debt-loaded financial bomb that is about to go off. If enough of those companies tip over into insolvency, we could be facing a very serious problem in the UK.
