Ofwat has published the detail behind its July decisions on revisions to the PR19 methodology on legitimacy grounds.
These decisions included:
Outperformance sharing requirements for companies with actual gearing at least 10% higher than notional gearing – i.e 70% geared and above. Ofwat said this “could see the most highly geared water companies forced to share up to £230 million with customers over the period 2020-2025”.
Boosting transparency around board decisions on dividends and performance related executive pay, and financial resilience.