Question · Q2 2016
Ashley Thomas asked for the company's view on Ofwat's Return on Regulated Equity (RoRE) methodology and its consistency. He also inquired whether the company is making pension deficit repair contributions beyond what is allowed by the regulator.
Answer
CFO Russ Houlden answered both questions. He confirmed the company is making deficit repair contributions of around £40 million per year, which is double the £20 million regulatory allowance. On RoRE, he expressed that he is 'a lot happier' with the methodology now on its eighth definition, as it has flushed out major inconsistencies, though some areas still need refinement.