Thu, Nov 12, 2026
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Finance and Risk

According to Moody's Investors Service, recent Ofwat guidance indicates a significant reduction in allowed returns for UK water companies, with Anglian Water, Thames Water, Yorkshire Water and Southern Water particularly at risk.

The European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), and the European Union, through the Neighbourhood Investment Facility, are joining forces to support the modernisation of water and waste water infrastructure in Moldova’s capital, Chisinau.

A report in yesterday’s Sunday Times newspaper says that six of the UK’s largest water companies have taken £11 billion in dividends during the past decade and paid only £1.7 billion in corporation tax. Average customers’ bills have increased by 55% over the period.

The EU is to make it easier for companies to raise essential finance for investment.

Today’s Autumn Budget statement contains a number of measures which could impact on the UK water sector, including an overhaul of the planning infra regime, increased tax relief for shale gas, easier access to funding and moves to tackle tax avoidance by large corporation.

A new report from the Government’s spending watchdog the National Audit Office is warning that water bills will continue to rise above the rate of inflation for the next 17 years. The report also expresses concerns about water industry regulator Ofwat's role.

 

IFC, a member of the World Bank Group, has published research highlighting up to $1 trillion of investment potential in renewable energy, resource efficiency, and climate change adaptation – including $70 billion in improved water usage - across Emerging Europe, Central Asia, and the Middle East and North Africa.

 

European non-performing loans (NPLs) held by banks have increased to €1.2 trillion (up by nearly €100 billion in 12 months) driven mainly by reported increases in Italy, Greece, Spain and Ireland, says PwC in its latest market update.

The outlook for the UK water sector remains stable on expectations that it will maintain its solid performance until the end of the current five-year regulatory period in March 2015, says Moody's Investors Service in its Industry Outlook report on the sector published today.

Persistent low real interest rates would negatively affect UK regulated utilities' fair value leverage, liquidity and interest cover, which could lead to companies needing to deleverage to maintain key financial metrics in line with their assigned rating, says Moody's Investors Service in two Special Comment reports on UK regulated utilities published today.

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