(by Verity Mitchell) On 18 August, Moody’s Ratings announced that it had changed its credit outlook for Southern Water to positive, while on 20 August, S&P Global Ratings also announced it had revised its outlook from negative to stable. Fitch had already upgraded its rating last month. Now all three major rating agencies have formally recognised the improvements being made across the business: pledged equity support of £300m from Southern Water’s shareholders; improved finan

(by Karma Loveday) Ofwat has finalised its PR24 Delivery Plan Assessment Framework, following May’s consultation. This will hold companies to account on their delivery against unprecedented levels of AMP8 investment, by tracking each company’s progress against its delivery plan. These cover key items of expenditure covered by Price Control Deliverables, including on storm overflow capacity, nutrient removal work, the smart meter rollout, mains replacement and supply interconn

(by Karma Loveday) Ofwat has set out a series of actions and commitments it will take to boost contractor confidence in the £50bn Major Water Infrastructure Programme, covering reservoirs, transfers and alternative water source supply schemes. The regulator pledged: Standardisation – through both recently published updated guidance on Direct Procurement for Customers and the Specified Infrastructure Projects Regulations, and standard form template Competitively Appointed Pr

(by Karma Loveday) Water UK and Ofwat last week outright rejected media reports that water companies could ‘surge charge’ during drought – a practice where higher prices are applied in times of high demand, such as for mini-cab fares on New Year’s Eve or for remaining ticket prices for near-sold-out shows. The reports misunderstood key planks of water price regulation, including revenue neutrality and that charging schemes are set in advance. They also misinterpreted the inte

(by Karma Loveday) Wessex Water has become the latest water company to impose a hosepipe ban – in its case, for the first time in 50 years (since the 1976 drought). It said it was also contacting larger business customers who are high water users to encourage them to avoid non-essential use. Affinity Water also last week extended the hosepipe ban active in its Central region to its Eastern region. This follows similar moves by many other companies following the driest July in

(by Karma Loveday) Lee Pitcher MP, former water industry employee and chair of a number of All Party Parliamentary Groups relevant to the sector, has been appointed Parliamentary private secretary to Defra. Yorkshire Water has appointed Jonathan Lewis as a non-executive director and chair designate. He will take over as chair from 1 October 2026, succeeding Vanda Murray OBE DBA. Lewis is chair of Associated British Ports and former chief executive of Capita and Amec Foster W

(by Karma Loveday) The Strategic Panel has called on Ofwat to show the reasoning and evidence behind its Retail Exit Code (REC) Review positions. Responding to the REC consultation, the most senior governance body in the business retail water market welcomed the direction of travel proposed by the regulator in terms of more closely tailoring protections to harms. But it probed for detailed evidence of harm and therefore the need for protection, and wanted to see a more dynami

(by Karma Loveday) Four more areas – East Midlands, Lincolnshire & Northamptonshire, Kent & East Sussex, and Solent & the South Downs – moved into drought last week. This means 71.3% of England, as well as all of Wales, is now formally in drought. 45m people are living in drought areas, and 27m are subject to temporary use bans from eight water companies. In parallel, the North East and Yorkshire moved to prolonged dry weather – the stage before drought – with nowhere now de

(by Karma Loveday) Ofwat has allowed the vast majority of extra spending requested by water companies under the new Cost Change Process, which enables in-period funding for requirements that were uncertain or unknown when the PR24 determinations were issued. Thirteen companies submitted requests totalling £4.3bn. £752m was assessed to be out of scope or insufficiently evidenced. Of the remaining £3.53bn, £3.39bn (96%) has been approved under draft decisions issued last week.

(by Verity Mitchell) Frontier Economics has produced a report commissioned by Thames Water’s creditors, which has suggested that re-nationalising the water sector would cost £400bn over the next 24 years. The number reflects only the cost to the Government, with no compensatory benefit assumptions. The report put the initial cost of re-nationalisation at £144bn in 2029/30 prices, given the most realistic timeframe for any transaction. The Government would then be liable for a