CEPA’s economists have a robust understanding of the water and sewerage sector developed through years of involvement in relevant projects. Our work in the water sector is mostly related to economic regulation. We address questions such as:
- How can regulators improve the incentives of the regulatory regime?
- How can regulators measure a water company’s performance?
- What are the tariffs that water companies should charge?
- What is the optimal regulatory system?
- What are the implications of making parts of the water sector subject to competition?
- What is the cost of capital of water companies?
We have advised major water companies and water regulators both in the UK and abroad, advising on water issues in the Czech Republic, Australia, Jamaica and Zambia, and also looked at water funding issues for an international agency. In Great Britain, CEPA has worked with three of the major water and sewerage companies as well as with Ofwat, WaterUK and UKWIR. In addition to this, we have worked with the Government in Northern Ireland as part of its water sector reform, and for the regulator on pricing issues.
Our water practice is headed by Ian Alexander, a CEPA Director, who has been involved in water regulation since 1991 and was recently a member of the expert panel of advisers to Ofwat, which drove the agenda for the current regulatory regime. Our core staff have broad experience in water regulation, including one of our Managing Consultant who has worked for water companies and regulators in the UK and abroad for more than ten years. Two of our associates have also been heavily involved in the water sector, one in an academic role and acting as an adviser to Ofwat, while another was the Managing Director of United Utilities, one of the largest water and sewerage companies in the UK, in addition to being a non-executive member of the Northern Ireland multi-sector regulator.
Our water clients include regulators, water companies, and investment groups in the UK and beyond. Some examples of clients we have advised are:
- Thames Water
- Severn Trent
- UK Water Industry Research (UKWIR)
- Czech Ministry of the Environment
- Independent Pricing and Regulatory Tribunal (IPART)
- Water UK
- The World Bank
Some examples of our experience in water are: