In an open letter addressed to Chief Executive Officer of Ofwat, the UK water regulator, the EDHEC Infrastructure & Private Assets Research Institute has expressed deep concern about the regulator’s role in the mispricing of Thames Water’s cost of capital. The letter, penned by Professor Noël Amenc, Dr Frederic Blanc-Brude and Dr Tim Whittaker, highlights the impact of mispricing on both end-users and private investors in the infrastructure sector. The failure to use the right approach and the right data to accurately estimate the cost of capital has led to distorted incentives and significant consequences for all stakeholders involved.

Read an Open Letter here.