Private equity investors don’t feel listened to by Ofwat

Private equity investors slammed Ofwat’s regulatory framework and practice in the regulator’s latest survey of sentiment among the investment community. 100% of private equity respondents disagreed with the statement that Ofwat is listening to investors, and 90% disagreed that Ofwat regulates in a proportionate, consistent, transparent and targeted way. 

Responses from listed equity investors were considerably more positive, with the equivalent figures 33% and 21%.

Debt investors returned comparable results, where the equivalent numbers were 28% and 28%.

Ofwat asked 377 investors to agree or disagree with seven questions in November-December 2023, and received a 15% response rate (58). The aggregate numbers are below, and the charts show the breakdown by investor type. 

Ofwat’s regulatory framework aligns the interests of regulated companies and their investors with those of customers over the long term: 

Agree 39% 

Disagree 43%

Neutral 17%

Ofwat regulates in a proportionate, consistent, transparent and targeted way, choosing the most appropriate tools from within a wide range of regulatory responses: 

Agree 48%

Disagree 36%

Neutral 16%

Ofwat is independent of government(s):

Agree 38%

Disagree 38%

Neutral 26%

Ofwat’s policies are well-considered and consistent: 

Agree 45%

Disagree 29%

Neutral 26%

Ofwat is listening to investors:

Agree 24%

Disagree 48%

Neutral 28%

Ofwat engages with the investor and credit-rating communities in an open and transparent way:

Agree 69%

Disagree 19%

Neutral 12%

Ofwat engages consistently and sufficiently with all types of investment stakeholder (debt, equity and analysts):

Agree 65%

Disagree 26%

Neutral 9%