Ofwat fires a warning shot as price review gets underway

The publication of the methodology for the UK water sector’s next price review shows the regulator’s determination to drive value in the sector. It will sort the men from the boys.

The industry regulator plans to ensure that UK water companies will have to work much harder to sustain their current level of returns from 2020 onwards.

In a 280-page consultation document published earlier this month on the methodology it is proposing to adopt for the next price review in 2019, Ofwat confirmed its intention to impose a significantly lower allowable cost of capital on the...

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