CMA meets Ofwat half way on cost of capital

摘要

The Competition and Markets Authority has ultimately backed down on its initial plan to allow three large English water and sewerage companies (WaSCs) substantially higher returns over the next five years than the rest of the sector. The CMA's final determinations for Anglian, Yorkshire, and Northumbrian increased their allowable weighted average cost of capital (WACC) over the AMP7 period to 3.2% - an uplift of just 24 basis points on the 2.96% figure that the industry regulator Ofwat set for the industry at the end of 2019.