Other stories from last week

(by Karma Loveday)

Ofwat is consulting until 10 September on its implementation of the Outturn Adjustment Mechanism (OAM) – a PR24 mechanism to recalibrate investor returns in the event there is systematic out or underperformance across the sector. 

The OAM is triggered when there is a significant difference between the sector's outturn

returns and what was expected. Under current arrangements, this is where the performance of median companies passes a threshold of 50bps impact on the notional equity return. If triggered, an adjustment is made to all companies' payments based on the difference between the median benchmark and the deadband trigger threshold.

Now the regulator plans to adopt the recommendations of the Competition and Markets Authority (CMA) in its PR24 redeterminations. Under this option, the OAM adjustment would be calculated using two versions of the Outcome Delivery Incentive performance model:

• For disputing companies, a version using revised Performance Commitment Levels and ODI rates as set out by the CMA for all companies.

• For the non-disputing companies, a version using the outcomes packages as set out in the original final determinations for all companies.

Two new appointments, each for a three-year term, have been made to the board of Natural England. Kunle Barker is a broadcaster and co-founder of Natural Places, a consultancy and think-tank combining research and practice to embed nature-led thinking into housing, regeneration, place-making and urban futures. Tom Sleigh is an experienced executive and non-executive. He chairs the City of London Corporation’s Planning and Transportation Committee and serves as a Non-Executive Director of the Houses of Parliament Restoration and Renewal Delivery Authority.

Recruiter Murray McIntosh has called on water professionals to complete its 2026 Water Industry Labour Report survey: https://form.typeform.com/to/iOof5J8S?typeform-source=www.linkedin.com In addition to the usual subjects, this year the research also covers workforce wellbeing and the role of AI in people and productivity challenges. 

Water Plus has had its net zero targets validated by the Science Based Targets initiative, a globally recognised accreditation service. The retailer has committed to reduce absolute Scope 1, 2 and 3 greenhouse gas emissions by 90% by financial year 2040, from a 2024/2025 base year. There are interim targets for 2030.