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. CEPA’s economists have a robust understanding of water sector policy, 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;
- retail; 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:
- Advising Irish Water on cost benchmarking issues in support of its submission to the Commission for Regulation of Utilities (CRU).
- 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.
Competition is alive and kicking in the water sector. Various jurisdictions have...
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...
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 1307 for Australia.View our entire Water team
Water News & insights
Economist application window opens
We are now accepting applications for entry-level economist positions, commencing during 2020 in London.
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.