Regulated essential service utilities offer lenders some of the lowest business risks seen amongst debt issuers and consist of borrowers in the gas, electricity and water / sewerage markets.

From a credit perspective, the strongest regulatory environment is offered in the UK. Regulated utilities are licensed by the UK government and are subject to a high degree of regulation and price control. The licensees own and operate significant infrastructure networks, which are fundamental to economic and social activity and thus are of major strategic and political importance to the UK government. Each licensee operates in a certain geographic area and has a virtual monopoly.