Ofwat's price dilemma over Wessex bid
Article Abstract:
Wessex Water plans a bid to acquire South West Water and the industry regulator, Ofwat, is under pressure to act. Ofwat could be accused of lack of consistency if no price cuts are imposed. South West Water has high bills and has suffered accidents such as loss of water from a reservoir during a drought in 1995, and harmful bacteria levels in water. The UK government is likely to back the proposed acquisition. Wessex shareholders could benefit more if the company bought back its own shares than if it bid for South West Water.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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It never rains
Article Abstract:
UK water utilities have been told to compensate customers who have dought restrictions placed on them, by Ofwat, which regulates the industry. Water companies argues that Ofwat has hampered investment in repairing leaks by seeking to keep charges low for customers. Share prices of UK water utilities have been affected by Ofwat's criticisms. Ofwat may be seeking to safeguard its future in case the UK Labor Party wins the next election. Water companies could make voluntary compensation payments as a public relations exercise.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Labour's utility threat is a tax relief for City
Article Abstract:
The UK Labor Party plans to impose a windfall profit tax on privatized electric and water utilities, and this may also be imposed on gas utilities. The announcement of the plans did not cause much of a drop in share prices since the amount to be taken in tax does not appear to be as much as feared. Electricity companies could be affected if they are trying to give handouts to shareholders in order to fend off takeover bids. The UK Conservative Party also appears to want to be perceived as stricter on these utilities.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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