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United Kingdom · Question · Written question

HL HL3909

Water Companies: Debts

answeredUnited Kingdom· UK Parliament· EN

Introduced

17 April 2024

Last action

26 April 2024 · Answer

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Answered

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Discovery layer

Source updated

26 April 2024

Summary

To ask His Majesty's Government why OFWAT calculate gearing levels of water companies by using a debt-to-assets ratio as opposed to a debt-to-equity ratio.

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Timeline

  1. 17 April 2024

    Written question

    To ask His Majesty's Government why OFWAT calculate gearing levels of water companies by using a debt-to-assets ratio as opposed to a debt-to-equity ratio.

    Source: Lords

  2. 26 April 2024

    Answer

    It is standard practice for regulated sectors to calculate gearing by reference to Regulator Capital Value (RCV). This is because there exists an RCV which represents costs incurred to date which can be recovered from customers in the future. This approac...

    Source: Written answer

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