We work with major water companies and their investors, regulators, governments, consumer agencies and international institutions to help them deliver their objectives through independent, impartial and impactful economic advice. We have a robust understanding of water sector policy, regulatory economics, and financing and funding issues developed through years of practical experience.
Our work in the water sector covers a wide range of areas, including:
- infrastructure investment;
- water poverty & public value; and
We have worked on water sector issues internationally, including the UK, Ireland, Australia, and several other countries in the EMEA region. Examples of our recent work include:
- Evaluating Ofwat’s approach to risk and return in the context of the PR24 framework.
- Supporting a water-only company with a review and update of their Developer Services Charging Arrangements and their Bulk Supply charges for New Appointments and Variations (NAVs).
- Supporting the UK water companies, through the industry research body UK Water Industry Research, with the development of a measure of water poverty.
- Advising both Ofwat and the Northern Ireland Utility Regulator on water and wastewater cost assessment issues as they develop price control revenue allowances for the upcoming PR19 and PC21 price controls respectively.
- Assessing potential future developments and scenarios in the UK water sector on behalf of an investor.
- Reviewing Sydney Water’s current customer engagement processes.
- Evaluating the current bulk supply charging practices for NAV companies for Ofwat.
- Applying regulatory economics principles to a range of international water sector clients, for example in Jamaica and Oman.
Water infrastructure investment
Infrastructure investment is vital in capital intensive industries like the water sector.
We advise regulators, industry organisations and water and sewage companies to ensure...
Water poverty & public value
As an essential good, water should be affordable to all. However, around...
The key contacts for our Water practice are...
To talk to someone about our experience in this sector, please call either +44 (0)20 7269 0210 for the UK, or +61 2 9006 1308 for Australia.View our entire Water team
Water News & insights
Vacancy for a Senior Consultant: financial economics / regulatory finance
CEPA is seeking an exceptional individual to join its London office as a Senior Consultant, supporting the firm's work in financial economics and regulatory finance.
CEPA supports water, regulatory finance and global health practices with promotions to its partnership
Join us in congratulating Tom Cochrane and Kaveri Kumar on their recent promotions to the firm’s partnership. They join CEPA’s existing global Partners to lead a growing team of more than 50 economic, public and financial policy consulting experts.
Reputation acknowledged by ranking recognition
CEPA thanks those clients, industry leaders, associates and future economists for the feedback they provided to Consultancy.uk, resulting in the firm’s high-level, 2023 ranking as one of the “Top Economics consulting firms in the UK”.
Dr Darryl Biggar appointed to bolster CEPA Australia’s practice
CEPA is pleased to announce the appointment of Dr Darryl Biggar as a senior advisor in its Australian practice.
LSE students present findings about biodiversity policy
We are pleased to have supported another cohort of students undertaking the Capstone Course at the London School of Economics (LSE).
CEPA has again been recognised as one of the UK’s leading management consultants
We are grateful for the continued positive feedback from the market, which has led to CEPA retaining its position in the Financial Times' ratings.
Vacancy for an economic consultant: water and transport
CEPA is looking for an outstanding person to join our London office as a Consultant or Senior Consultant to support our work in water and transport.
Ofwat publishes a report that considers how to facilitate the delivery of multi-sector reservoir systems
The Regulators’ Alliance for Progressing Infrastructure Development (RAPID) and three water companies commissioned a report from CEPA and Agilia to consider the legal and commercial models that could facilitate the delivery of multi-sector reservoir systems.
CEPA recognised as one of the UK’s leading management consultants
Following another year of providing high-quality advice to our clients across our core sectors, we are grateful for the positive feedback from the market, which has led to CEPA’s inclusion in the Financial Times’ independent ratings report.
Evaluation of New Reg trial in Australia released
The Australian Energy Regulator has published our independent evaluation of a trial, to deliver better outcomes for consumers through network consumer engagement and regulatory innovation.
Ofwat’s vision for the 2024 price review (PR24)
We take a look at: What have we learned about Ofwat’s thinking? What changes are proposed? Where do we expect engagement? And what will water companies need to do?
Ofwat publishes further CEPA report on allocation of risk
Our latest report for Ofwat supports its early thinking on the design of the next water sector price review, PR24.
Ofwat outlines its initial views about the Price Review frameworks for 2024 (PR24) and beyond
The regulator of the water sector in England & Wales has published a consultation response, which discusses its high-level ideas for maximising the potential of price reviews to help the sector create value for customers, communities, and the environment.
Independent review of water affordability
CCW, a body that represents water consumers in England and Wales, has published its review of the affordability support for financially vulnerable water customers.
The Utility Regulator for Northern Ireland publishes its price control draft determination
We have been involved in the process since 2018 and have produced reports, which have been used by the regulator to set efficient cost allowances for NI Water.
How best to measure water poverty
Water UK publish the Measuring Water Poverty using a bills to income metric report that we prepared for them.
CEPA provides analysis for the New Appointments & Variations Regime in the water industry
Ofwat, the economic regulator of the water sector in England & Wales, has commissioned CEPA to analyse bulk charges for the New Appointments and Variations (NAVs) Regime.
CEPA helps to define water poverty, understand future pressures & appraise UK water companies’ efforts
CEPA supports UK Water Industry Research with their work designed to help decision makers and water companies in making water and sewerage bills affordable and their ambition to achieve 'zero customers in water poverty by 2030'.
Water poverty drivers & metrics in the UK
UK Water Industry Research (UKWIR) will host the launch of a new report, which is designed to support decision makers and water companies in the UK.
Considerations for UK regulators setting the value of debt beta
UK Regulators Network publish a CEPA report on approaches to debt beta estimation and the link between debt beta and gearing levels.
Utility Regulator publishes approach papers for its price control
The Utility Regulator in preparation for its price control (PC21), has published its PC21 Opex ‘minded to’ Methodology and PC21 Capex 'minded to' Methodology.
Econometric benchmarking for Ofwat
CEPA was commissioned by Ofwat to develop a suite of econometric models focusing on different parts of the value chain in order to determine the efficient level of costs allowed for companies under each of the binding price control settlements for PR19.
Approach to customer segmentation in the water sector
CEPA was engaged by Ofwat to build an evidence base on approaches to customer segmentation and possible data sources to inform approaches to residential customer segmentation.
Evaluating the social and economic impact of investments in wastewater
CEPA conducted a literature review of methodological approaches to evaluate economic and social impact of investments in the wastewater sector.
Review of readiness for retail market opening
CEPA was appointed by Ofwat to carry out a targeted review of market participants’ readiness for opening of the retail market in April 2017 for...
Alternative approaches for setting the cost of debt
CEPA were commissioned by two UK economic regulators to look at alternative approaches that could be used in regulatory determinations for the cost of debt allowance.
Estimating a shadow value of water
CEPA were appointed by the EBRD to support them in developing estimates of an economic value of water, reflecting the full social costs of water...
Thames Tideway Tunnel & the cost of capital
In 2015, Ofwat awarded the licence for the Thames Tideway Tunnel. As part of the announcement, Ofwat stated the cost of capital that will apply during the construction period of the project (the 'bid WACC') would be 2.497%.
Financial and economic analysis of Morocco’s water leakage reduction objective
CEPA was hired by the World Bank to review Morocco's submission to the United Nations Framework Convention on Climate Change.
Merger support in the water sector
CEPA supported Ofwat in the CMA inquiry into the merger of South West Water and Bournemouth Water.