Water companies have claimed that Ofwat’s current methodology for setting the cost of equity will provide insufficient returns to attract the massively increased investment needed during AMP8. In their PR24 business plans released on Monday (2 October), multiple companies noted that the gap between the cost of equity and debt would be significantly reduced and warned that this would leave little incentive for investors to accept the inherently higher risks of equity investment.
Water firms claim PR24 equity returns will put off investors
