Published date: 17 May 2018

Last edited date: 17 May 2018

Awarded contract - This means that the contract has been awarded to a supplier.


Closing: 20 February 2018

Contract summary

Industry

  • Business and management consultancy services - 79410000

Location of contract

West Midlands

Value of contract

£0 to £29,225

Procurement reference

PROC.01.0601

Published date

17 May 2018

Closing date

20 February 2018

Contract start date

26 February 2018

Contract end date

29 March 2018

Contract type

Service contract

Procedure type

Call-off from a framework agreement

A mini-competition or direct purchase from a pre-established framework agreement.

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No

Description

This targeted review will need to provide an overview of how equity investment in water (including wastewater) companies can contribute to the delivery of the proper carrying out of companies' functions, including how equity investment can align with the interests of customers. Our regulatory strategy and approach to economic regulation aligns interests of investors and management with customers. The purpose of this study is provide insight into equity investors and the role that they play and how this is linked to behaviour and actions of management and the implications for customers. Specifically we would like the following Key Questions answered:

How can equity investment in the water sector contribute to the delivery of the functions of water and wastewater companies? In particular, how can equity best (1) drive the correct management behaviours; (2) ensure that businesses can withstand shocks; (3) contribute any other elements to the delivery of a resilient water business?

What are the characteristics of equity that shape these key contributions? For example, how are the outcomes for the business affected by the size of the equity piece; the diversity of equity investors; different types of equity investors (nature of funds, focus of overall portfolio, etc.), and any other relevant characteristics?

In practice, what factors (including capital/ownership structure) hinder or improve the functions of equity and the outcomes for customers?

Recommendations for any amendment to these Questions should aim to enhance Ofwat's understanding of investment motivations and likely behaviours in the infrastructure space. Costings should be provided separately for additional queries, if appropriate.

Scope of Work
The scope of this work includes assessing academic and other literature on investors' motivations and behaviours with a particular focus on regulated utilities particularly water and wastewater companies. The scope also includes an analysis of the theory translates into practice and the real world challenges the theory confronts.

The targeted review needs to consider and report on the specific questions set out in this ITT under section 3 - Objectives, relating to equity investor behaviours, motivations and how this impacts on companies' financial resilience and managements actions.

More information

Attachments

Award information

Awarded date

23 February 2018

Contract start date

26 February 2018

Contract end date

31 March 2018

Total value of contract

£29,225

This contract was awarded to 1 supplier.

Europe Economics

Address

53 - 64 Chancery House
London
WC2A 1QU

Reference

None

Value of contract

£29,225

Supplier is SME?

No

Supplier is VCSE?

No

Additional details

Awarded value is the capped price for the project so it can fall below

About the buyer

Address

Centre City Tower
7 Hill Street
Birmingham
B5 4UA
England

Email

mailbox@ofwat.gsi.gov.uk