Ofwat have issued a consultation on strengthening the regulatory ring-fencing framework to bring all licences up to the industry leading standard. It sets out why Ofwat believes that the regulatory ring-fencing framework should comprise licence conditions which are consistent across the industry. The proposals build on previous consultations and discussions in industry workshops, and specifically relate to:
maintaining investment grade credit ratings and cash lock-up;
providing ring-fencing certificates;
reporting of material issues; and
change of control.
Ofwat are seeking responses to this consultation via FinanceAndGovernance@ofwat.gsi.gov.uk by 8 January 2019.