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Richard Khaldi, a water sector expert at PA Consulting, was quoted in an article by Rory Gallivan for Inframation ahead of Ofwat's price review (PR19).
In his piece, Rory writes that Ofwat will impose stringent measures on the sector in its next price review, resulting in a further squeeze on returns.
Rory asks Richard whether PR19 could deter investment in the water sector if it’s too stringent.
Richard, a former board memeber at Ofwat, says: "Ofwat is asking water companies to do a lot more for a lot less revenue.”
Rory then asks Richard which parts of the draft methodology are most likely to be of concern to water companies.
Richard replies: “A lot will depend on the level of the cost of capital.”
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