Sam Williams, a Director of Economic Insight, comments in The Water Report on the government’s decision to abolish PFI as a means of facilitating infrastructure delivery. Download: “PFI is dead. Long live moral hazard.”
Ofwat has today published its decision to increase the cap on outperformance payments Severn Trent Water can receive relating to its outcomes delivery incentives. The cap has been increased from 2.0% to 2.6% return on equity. Ofwat estimates that this could be worth up to £45m in allowed revenues to the company. Economic Insight advised Severn Trent on its application to Ofwat.