Water firms ‘laying groundwork’ to appeal against Ofwat bill rise cap, says Moody’s

The Mogden sewage treatment works, owned by Thames Water, in west London. Thames’s debt rating was slashed last month. Photograph: Toby Melville/Reuters

Water companies are “laying the groundwork” to appeal against Ofwat’s decision to rein in how much they can increase customers’ bills, according to a leading credit rating agency.

Moody’s said in a report on the water industry that it expected the companies to take the water regulator’s final ruling on bill rises to the competition watchdog for reconsideration if expectations for returns on investment did not improve.