In an article published in IPE Real Assets on 22 July, 2025 examining the key recommendations from a major government-commissioned review of the privatised water industry in the UK, Tim Whittaker, Director of EDHEC Infra & Private Assets, welcomed the report as a solid starting point but questioned whether it would truly fix the industry, raising concerns about regulatory reform, capital requirements, and balancing investor confidence with consumer affordability:

“Tim Whittaker, director of the EDHEC Infrastructure & Private Assets Research Institute, which has previously been critical of the UK’s water regulator, said the report had “done a good job at highlighting the shortcomings in the water industry and regulation” and is a “good start”. But, he added: “It isn’t clear if this is going to be the ‘magic bullet’ that will result in the water industry being fixed. There remain a series of key questions that investors will need to be sorted in the coming months.”

The first of these is what comes after Ofwat? Whittaker said: “Will the new regulator just be Ofwat with more responsibilities, or will they take a fresh approach to regulation? For example, will they reconsider the past approaches regarding setting allowed returns?”

Furthermore, investors would need clarity on how the minimum capital requirements would be implemented. He said: “Will they be just another dividend ban like the existing rules? How would this requirement stop the slow demise of another water company as had happened to Thames [Water]?” Above all else, Whittaker said: “How will the new regulator work to ensure the sector is still investable whilst also ensuring the bills are affordable?””

Read the full article here.