(Reuters) – Britain’s water utilities’ shareholder returns will be capped at their lowest level since the sector was privatised three decades ago under a ruling from the Water Services Regulation Authority (Ofwat) on Monday.
Ofwat, which penalises utilities when they fail to meet targets, said the cut to allowed return was about half of what it had signalled could be possible.
Ofwat is looking to encourage investment in improving or building infrastructure after British utilities faced a series of fines for broken pipes and pollution in the past year.
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