Financing water infrastructures
Since privatisation, the water industry has delivered huge investment, without adding to public debt.
This has allowed for improvements in standards and the replacement of ageing infrastructure. But if it is to continue delivering improvements for customers, it is vital that the industry has continued access to finance at an affordable price.
Continuing turmoil in financial markets presents the industry with a number of challenges, at a time when the shape of the industry is also changing due to substantial regulatory reform. These factors make it more difficult to rely on the same approaches that have served in the past. Severn Trent commissioned KPMG to look at potential solutions to these challenges, which involve both Ofwat and the industry.