712 articles in United Kingdom
The wider repercussions of Thames Water’s recent bid to raise tariffs mean that the company is likely to come under pressure from its industry peers to accept the regulator’s ruling to overturn the application.
Christopher Gasson believes that indebtedness is a major problem for the global economy, but it need not be an issue for the water industry.
Economic regulator Ofwat has hit back at Thames Water’s application for an interim tariff hike, saying that there is only sufficient evidence to justify a £7-a-year rise in consumer bills.
Wider industry events appear to have limited additional interest in a 30% stake in Kelda, despite an extended bid deadline.
Moody’s has warned that a sustained low interest rate environment could force some regulated UK water utilities to raise additional equity.
Ofwat, the economic regulator for the water industry in England and Wales, has countered Thames Water’s application for an interim rate hike by claiming that the company has underspent on sewer flooding and let its sewage treatment investment programme slip. Ofwat is due to release an interim decision in mid- October.
Share the gain and feel the pain.
With binding offers not due until mid-September, the sellers of 30% of Kelda’s equity have more than enough time to digest the first-round bids. What sort of premium can they expect to realise?
As part of its changing approach to the periodic review process, the regulator plans to grade companies’ business plans under a scheme which will see the best qualify for an earlier price settlement.
The economic water regulator for England and Wales is promising a fast-track system for approving water companies’ financial settlements at its forthcoming price review next year.