Has the Game Changed?

Listed utilities are traditionally viewed as a safe haven for investors in turbulent times. However, many water companies are under pressure as the deflationary environment will affect capital investment and revenues. The next regulatory period will prove challenging regardless of whether any appeals to the regulator are successful, as businesses will seek to control costs and minimise impact on revenue generation. The scope for improving operational performance remains high in a number of businesses, procurement and finance being obvious areas with a demonstrable return on investment. The question I have is has the game changed for utility businesses across the board?

Duncan Hoggett is the Head of the Utilities Practice at Interim Partners.

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