水务委员会自私有化以来对该行业的最大规模审查：中期报告即将出炉

Restricted - External First LookUU.L/UU/ LNEuropean UtilitiesPrice TargetPrice (27-May-25)Potential Upside/DownsideSource: Bloomberg, Barclays ResearchPNN.L/PNN LNEuropean UtilitiesPrice TargetPrice (27-May-25)Potential Upside/DownsideSource: Bloomberg, Barclays ResearchSVT.L/SVT LNEuropean UtilitiesPrice TargetPrice (27-May-25)Potential Upside/DownsideSource: Bloomberg, Barclays ResearchEuropean UtilitiesDominic Nash+44 (0)20 3134 2364dominic.nash@barclays.comBarclays, UKLaura Marconi+44 (0)20 3555 0762laura.marconi@barclays.comBarclays, UKPeter Crampton+44 (0)20 3555 0125peter.crampton2@barclays.comBarclays, UKJose Ruiz+44 (0)20 3134 3140jose.ruizfernandez@barclays.comBarclays, UKTemitope Sulaiman, CFA+44 (0)20 3134 3439temitope.sulaiman@barclays.comBarclays, UK EQUAL WEIGHTPOSITIVEGBp 1280GBp 1156+10.7%OVERWEIGHTPOSITIVEGBp 650GBp 511+27.4%EQUAL WEIGHTPOSITIVEGBp 2960GBp 2737+8.1% 1.Lack of strategic direction: A framework for the needs, costs, priorities and bills1.2.System planning:Regional versus national planning and accountability2.3.Legislation:Direction and flexibility of regulation3.4.Regulation:Gaps/overlay between regulators and should regulators be merged? How4.should water companies be monitored/identified/sanctioned and rehabilitated5.Economic regulation:Scope and complexity of regulation, a supervisory model or other?5.How to reduce risk of regulation for investors (AAA credit rating requirement for Ofwat?) andset 'fair and stable' returns? Should there be a tighter cap and floors for returns?6.Company business models: Are there links between company ownership governance and6.performance?7.Equity and debt requirements7.8.Asset health and renewals appreciation8.The NAO water report was published 25 April; see our analysis. It highlighted:•A national plan is needed. This would allow high leveltrade-offs,such as balancing the•environment with costs of living.•Gaps (and overlays) in regulatory oversight. These need to be addressed.••A question of trust.More assurances are needed from the industry and regulatory bodies.••Regulatory simplicity:Ofwat needs to simplify PR29, review the success of incentive•schemes, align deadlines with the EA and DWI.2 Analyst(s) Certification(s):We, Peter Crampton, Dominic Nash, Jose Ruiz, Temitope Sulaiman, CFA and Laura Marconi, hereby certify (1) that the views expressed in this researchreport accurately reflect our personal views about any or all of the subject securities or issuers referred to in this research report and (2) no part of ourcompensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this research report.Important Disclosures:Barclays Research is produced by the Investment Bank of Barclays Bank PLC and itsaffiliates(collectively and each individually, "Barclays"). Allauthors contributing to this research report are Research Analysts unless otherwise indicated. The publication date at the top of the report reflects thelocal time where the report was produced and maydifferfrom the release date provided in GMT.Availability of Disclosures:Where any companies are the subject of this research report, for current important disclosures regarding those companies please refer to https://publicresearch.barclays.com or alternatively send a written request to: Barclays Research Compliance, 745 Seventh Avenue, 13th Floor, New York, NY10019 or call +1-212-526-1072.The analysts responsible for preparing this research report have received compensation based upon various factors including the firm's total revenues,a portion of which is generated by investment banking activities, the profitability and revenues of the Markets business and the potential interest of thefirm's investing clients in research with respect to the asset class covered by the analyst.Research analysts employed outside the US byaffiliatesof Barclays Capital Inc. are not registered/qualified as research analysts with FINRA. Such non-US research analysts may not be associated persons of Barclays Capital Inc., which is a FINRA member, and therefore may not be subject to FINRA Rule2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst’s account.Analysts regularly conduct site visits to view the material operations of covered companies, but Barclays policy prohibits them from accepting paymentor reimbursement by any covered company of their travel expenses for such visits.Barclays Research Department produces various types of research including, but not limited to, fundamental analysis, equity-linked analysis,quantitative analysis, and trade ideas. Recommendations contained in one type of Barclays Research maydifferfrom those contained in other types ofBarclays Research, whether as a result ofdifferingtime horizons, methodologies, or otherwise.In order to access Barclays Statement regarding Research Dissemination Policies and Procedures, please refer to https://pub