Wessex Waters just announced hours ago that it has received a very good final determination from Ofwat for water tariff hikes for the next 5-year regulatory period from 2025 to 2030.
Basically it means Wessex Waters are getting a 20% hike in water tariffs in this final determination vs 0% or a small drop in the second draft determination.
The allowed WACC for the calculation of returns on capital is set at 4.58% real, way above the market expectation of a 30bps improvement to the 3.68% in the second draft determination (or about 4.0% real).