Pennon Group has confirmed what most of us had suspected already — that the regulatory regime imposed on the quoted water companies over the next five years is not that oppressive, after all.
The owner of South West Water confirmed that it would continue to raise dividends by inflation plus 4 per cent, the same rise that investors have had during the past five-year regulatory regime. This is the most generous in the sector. Of the other two quoted companies, United Utilities said that it would raise payments in line with inflation, while Severn Trent is proposing a 5 per cent cut.
One might wonder why Pennon, which was the first to reach agreement with Ofwat, the industry regulator, a year ago, has waited until