A leading analyst has said Ofwat must give more ground on the cost of equity in the PR24 price control so that it “becomes a facilitator rather than a blocker”. Martin Young told Utility Week that as “the regulatory game is played out” in water this year there “absolutely has to be a shift” on the base level of return. However, he stressed that this was a case of fair calibration and that “equity should rightly face the risk of underperformance”.
Ofwat needs to move on returns but underperformers can’t have a free ride
