How should the water sector respond to Covid-19?

How should the water sector respond to Covid-19?

What impact is the Covid-19 pandemic having on the water sector, and what is the most appropriate regulatory response?

The water sector is facing unprecedented challenges during this pandemic. There is even more need than usual for the companies to maintain continuous supplies, and companies face additional challenges such as reductions in the number of customers able to pay bills, and delays to construction work due to social distancing.

The effects are likely to be numerous and wide-ranging, meaning that it is complex to assess the overall impact on company finances and regulatory mechanisms. In addition, there remains significant uncertainty over how the crisis is likely to play out over the medium term. All of this makes it challenging to assess what the most appropriate regulatory response is.

We have assessed all of these issues in our paper, and the key conclusion of our work is that any regulatory response needs to be based on good quality evidence.

In our report, we consider:

  • What is the appropriate counterfactual?
  • What data sources and analysis should be used?
  • What timeframe does the analysis need to cover and how often should the evidence base be updated?

We look forward to continuing the conversation with companies, regulators, and stakeholders.

For more information, please contact [email protected] or call +44 (0) 20 7031 7000.

Click below to download our full report.

How should the water sector respond to Covid-19?