The PR14 business planning process has created a substantial challenge to the U.K. water industry requiring companies to outperform on their customer-focused outcomes, demonstrate substantial efficiency compared to AMP5 and satisfy shareholder expectations of levels of Return on Investment (ROI). The outperformance challenge is further driven by the reduction in the allowed Weighted Average Cost of Capital (WACC), resulting in a shortfall in Shareholder ROI that must be bridged by Totex Outperformance and achieving Outcome Delivery Incentives.
Louis Quartly, principal consultant at MWH, talks to the Institute of Water. Read what he has to say here.
The full digital version of the Institute of Water summer journal can be viewed here.
