UK water watchdog woos investors with ‘guaranteed revenues’ as it seeks £50bn

The largest water control in the UK has promised revenue guarantees for investors, and no competition and the least risk because it tries to collect more than 50 billion pounds for projects to treat water shortages.

Investors will have revenues “the right to collect” customers from customers, “climbing opportunities”, “covered obligations” and “positive investment” from the government, according to a brief paper in Offat that financial times see.

The document, which was presented to investors at a conference at the London offices at the Investment Bank of Jeffrez last Friday, adds that “there is no suffering from competitive risks or in the market” – in reference to the fact that there is no possible that there is no change in the demand for water infrastructure.

It is needed to invest up to 50 billion pounds to support about 30 new projects to improve the collapsed British infrastructure over the next fifteen years. It has already been approved by Offat, and projects include tanks, treatment work and water transmission plans. Most of these things will be delivered through special financing plans and pushed them largely through additional fees for customer bills.

This is controversial because the water companies have become a lightning rod for general anger after a set of financial issues, sewage leakage and offer interruption, as well as a sharp increase in the bills of living families.

OFAT, which supervises 16 private water and sewage companies in England and Wales, has a legal duty to protect consumer interests, “wherever it is appropriate by enhancing effective competition.” It is also charged with ensuring that water companies can finance their activities.

The investment conference comes at a time when the Offaat ministers enabled new rewards paid to senior executives. The head of the besieged tool said this week that retaining rewards will be paid from an emergency loan of 3 billion pounds guaranteed in April, at a interest rate of about 10 percent.

Offaat will receive new powers from next week to prohibit “uninterrupted rewards” for heads of water companies, as standards are not fulfilled. The forces will be retroactively for the fiscal year 2024-25.

“It is very likely that Offat will seek to restore the Times rewards in the Times, which the company’s political chair told this week to reach 50 percent of salaries,” said one of the officials in the Ministry of Environment, Food and Rural Affairs.

The official said: “Customers should not pay the price of mismanagement of the water company and we are calling for improving performance,” the official said.

Thames Water did not respond immediately to the comment.

Themes Water-and its current treatment-has become a warning story for this industry and potential investors in the UK water infrastructure.

New projects aim to address the expected water deficit of about 5 billion liters per day by 2050, according to Offat. The Environment Agency has warned that the 69 -year -old spring had left the country at the risk of drought this summer.

Investors, including Agilia Infrastructure Partners, Equitix and Aviva, attended Friday, according to Offat.

Projects will sit outside the usual organizational process for five years to organize bills, and they have their own administrative teams, and in some cases they will be paid throughout the construction period. Investors will either be paid through additional fees on customer bills throughout the license period about 25 years or throughout the project life.

Offaat argues that there are measures to protect customers and that the creation of separate vehicles funded from the private sector will reduce costs. But it is likely that consumers, who have already faced the increase in bills by an average of about 26 percent for each family as of April 1, is the largest annual height since privatization 36 years ago.

Matthew Lawrence, president of Common Wealth, a thinking suffocating, said the new plans were “leaving the free prison card for water companies.”

“They have not built enough water infrastructure, and now they cannot afford their costs, so they are asked to prepare more debt -loaded public budget, which will also be paid by customers.”

Some plans, including the new Abingdon and Fens tanks, are designed similar to the Tideway New Themes Tideway, which London residents paid additional fees – 26 pounds per year – for their bills since the construction began. They will continue to pay for the tunnel over its expected life for 125 years.

Offaat argues that new PFI plans are needed to encourage competition and bring experience because “many of these projects are of the size and complexity that water companies have not reached since privatization, and service providers and investors at the third party may be in a better position to provide.”

“The size and size of the projects would have created a completely new assets category, and will sit well with infrastructure investors and pension providers who seek to invest in long -term assets with predictable cash flows,” said Martin Young, an independent water and energy consultant who attended the conference on Friday.

New tanks have not been built for 36 years since privatization. New projects include 10 tanks, eight water recycling plans, desalination plant and nine transmission plans that will bring water from wet areas in the north to southern dried.

Offat said: “Integration with investors and the supply chain is very important to competitive purchases, and the value of value for money for customers. This type of participation activity is one of the main stakeholders is important to improve the provision of projects, and we will work with companies to expand the market participation in the coming months.”

Jeffrez refused to comment.