UK Water Funding at Risk Without Higher Returns, Investors Warn
- Investor round table with ministers was “extremely positive”
- Representatives claim Ofwat is damaging UK’s reputation
A sewage treatment works on the banks of the River Thames in London.
Photographer: Chris Ratcliffe/BloombergTop investors warned the UK government that they are unlikely to inject more money into the country’s ailing water system unless returns are made more attractive, according to people with knowledge of a private meeting with ministers.
Steve Reed, the environment secretary, held a meeting with investors in London on Tuesday. The thorny issue under discussion was the billions of pounds of equity needed to underpin an enormous £88 billion ($115 billion) upgrade of Britain’s water networks over the next five years. Representatives of major pension funds and asset managers warned that shareholders might not be prepared to invest unless the regulator improves returns, according to one of the people.