S&P Global Ratings comments on Ofwat updates, covered by the specialist press

Last week, U.K. water regulator Ofwat confirmed its plans to sharply reduce the returns available to water companies over the next five years.

S&P Global Ratings’ director Matan Benjamin comments that the proposals will result in a cut in allowed cost of capital in real terms to around 2.2% from 3.4% in the current regulatory period. He continues that the latest announcement from Ofwat “provides another indication that the next regulatory period for water utilities could be challenging”.

Following outreach by Moorgate, the comments were covered by InfraNews (behind paywall) and Environment Analyst (requires subscription).