Water: Water networks
We advise regulators, industry organisations and water and sewage companies to ensure customers are provided effective water services in an efficient manner.
We work on water networks worldwide.
We have a deep understanding of how network regulation works in the water industry, having helped design and implement multiple price controls under various regulatory frameworks over the years. We are an industry leader in applying econometric techniques as part of cost assessment and efficiency benchmarking.
Whether for regulators or the industry, we apply robust economic theory to deliver the impartial insight our clients need. At the heart of our practice is a desire to use our analytical expertise to benefit our clients and end users of water networks.
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...
Our key contacts for our Water practice are...
If you would like to talk to someone regarding our experience in this sector please contact our experts.View the Water team
Water News & insights
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.