Record number of UK water companies appeal to CMA following Ofwat's 'shortcomings'
GIIA comments on surge of UK water company appeals to the Competition Markets Authority
GIIA's chief executive Jon Phillips said:
"Ofwat has a statutory duty to ensure water companies can secure the unprecedented levels of private investment needed to build new water infrastructure and maintain existing assets in the wake of climate change and population growth. Yet, the regulator's current regulatory approach is not working. A surge in appeals to the Competition and Markets Authority (CMA) signals deep flaws in the system, making the UK less attractive in the global race for capital. The government has acknowledged these failings by establishing a Water Commission to drive reform, but these efforts may come too late to fix PR24’s shortcomings. Investors need urgent action now to restore confidence and secure the future of the sector.
"The government has also directed the CMA to prioritise making the UK a stronger destination for international investment. These appeals will be a key test of that commitment. If the UK is serious about attracting the capital needed for critical infrastructure, it must create a regulatory environment that encourages, rather than deters, long-term investment."