UK Water: PR24 and beyond

A forward view of AMP8: What does Ofwat have in mind and how might credit quality evolve?

Ofwat, the economic regulator for water companies in England and Wales has set out its PR24 vision; its ideas and ambitions for the price review that will set allowed revenues for the five years from April 2025. Ofwat says this is the moment for “fresh thinking and real change” in the face of “profound challenges”, including climate change, growing customer expectations and affordability.  
Ofwat wants to align the interests of companies and investors with those of customers, so that the sector is attractive to investors, but companies can only earn high returns through strong performance. The regulator plans to look again at its approach to assessing financeability, taking account of the need to ensure there is headroom to accommodate regulatory incentive mechanisms putting more revenue at risk. Companies with borrowing costs above regulatory assumptions will, however, continue to be exposed and the highly geared face further scrutiny as Ofwat looks again at “risky structures” to address “distorted incentives”

Join David Black, CEO of Ofwat, and Moody’s to discuss:

  • Ofwat’s current thinking on PR24 
  • ESG: the sector’s ability to contribute to the environment and net zero 
  • Financeability and investment 
  • The outlook for credit quality beyond 2025  
  • Speakers keyboard_arrow_down
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    Neil Griffiths-Lambeth Associate Managing Director, Public Projects & Infrastructure Finance Moody's Investors Service Bio
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    David Black Chief Executive Ofwat Bio
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    Stefanie Voelz Vice President – Senior Credit Officer, Infrastructure and Project Finance Moody's Investors Service Bio
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