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Competition and Markets Authority

Latest in Competition and Markets Authority

CMA likely to approve Bristol acquisition
Pennon Group's acquisition of Bristol Water has moved closer to completion as the Competition and Markets Authority (CMA) has said it is likely that evidence provided by the former would be accepted in response to concerns the deal could undermine Ofwat's ability to regulate. Meanwhile, the CMA has also launched a merger inquiry into the acquisition of a minority stake in gas distribution network SGN by Brookfield Asset Management.
News
CMA: Bristol deal could affect Ofwat’s ability to regulate
The CMA has raised concerns that Pennon's acquisition of Bristol Water could impede Ofwat's ability to regulate the market. The deal, which was completed in June, will be referred to a phase two investigation unless the companies can address the CMA's concerns.
News
Water UK: ‘Reasonable’ WACC necessary for investment at PR24
The trade body for the water sector has set out its thinking on Ofwat's proposed framework for the next price review in 2024. Water UK urged it to reflect the CMA's thinking on cost of capital to keep the sector appealing to the long-term investors it requires for necessary major infrastructure projects
News
Ofwat ‘didn’t have capacity’ to fully scrutinise sector in 20/21
During the unprecedented year that was 2020, Ofwat said it was not able to give the focus it wanted to companies' performance in the sector and instead concentrated on one or two. Attention was taken up dealing with the pandemic and the four cases referred to the CMA. Despite this the regulator achieved the majority of its goals for the year against 2020/21 targets.
News
Drawing a line under PR19
The publication of the Competition and Market Authority(CMA)'s water redeterminations justify why a record four companies sought an appeal. With gains made on all sides Utility Week explores what has been won and lost.
Analysis
Final pitches urge CMA to ‘reset the dial’
This week marks one year since the deadline for water companies in England and Wales to accept or reject Ofwat's final determinations for PR19. Ruth Williams delves into the final submissions to the Competition & Markets Authority (CMA) - from the appellant companies and the regulator - and recaps the arguments so far.
News
CMA pushes back water appeals deadline again
The Competition and Markets Authority has nudged back the estimated date for its PR19 final redeterminations, which are now expected to appear in "late" February. It follows a series of consultations on several areas, including the cost of capital.
News
Investors express alarm at CMA U-turn
Investors have rallied in response to the Competition and Markets Authority (CMA)’s revised approach to the cost of capital in the PR19 appeals. Infrastructure investment groups warned of long-term repercussions of the CMA’s change of tack, with one suggesting it brought the water sector “perilously close to the edge” of not being attractive to investors. Meanwhile, Ofwat warned the CMA that arguments are “likely to have been from investors that seek to protect their existing valuations” rather than concern for future investment.
News
Ofwat rules out 2021 implementation of CMA changes
Ofwat has rejected calls to change its charging rules to let appellant companies implement whatever ruling the CMA determines from April 2021. The updated charges will now not come into place until 2022.
News
CMA shifts on cost of capital
The CMA has updated its approach to the cost of debt and the cost of equity for the four water company appeals to PR19 business plans. The body has launched a consultation to its revised approaches that will inform the final redetermination in mid-February.
News
Has the CMA been handed a chance to compromise?
Ofgem's decision to shift on cost of capital in its final determinations for RIIO2 could be seen to have weakened Ofwat's position in convincing the Competition & Markets Authority to back its original position on returns. Alternatively, it could provide the ideal opportunity for compromise. Ruth Williams looks at the options.
Comment
Ofwat asked to reflect CMA appeals in charging rules
Anglian, Bristol and Northumbrian have asked the water regulator to extend the charges deadline for 2021/22 to accommodate changes in the CMA's redetermination, which is due to be published in February
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