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Expertise on tapPwC serving the water sector

www.pwc.com/water

Energy, Utilities and Mining

June 2013

PwC is a leading provider of professional services to regulated and non-regulated utility companies both in the UK and globally.

The UK Watergroup is an integral part of our UK Energy, Utilities & Mining Group.

We are committed to adding value to our clients and believe an in-depth understanding of industry issues is central to the delivery of services to those in the water sector. Many of these issues drive our programme of publications, roundtables and thought leadership.

1 Welcome

2 Our credentials

3 Serving you

4 Sector issues – how we can help

5 Our industry specialist team

6 Contacts

Table of contents

1 | Expertise on tap

1. Welcome

This publication describes how our UK Watergroup serves the sector through our strong and reliable network of dedicated industry experts.

PwC | Serving the water sector | 2

The UK water industry has an incalculable impact on the life of every person in this country and its impact reaches across the world. Today the sector faces a number of new, complex and often conflicting challenges. As well as responding to these challenges, the industry must play its part in reducing greenhouse gas emissions. This requirement must be balanced against the pressures of changing regulation, population growth concentrated in already water-stressed areas and other societal changes.The evolution of the industry is unlikely to slow, with market reform, competition, sustainability and Ofwat’s forthcoming price review (PR14) to respond to. Ownership of the regulated water industry has changed radically over recent years, primarily through the increasing influence of infrastructure funds. Business and investment models are unlikely to stand still in the context of a changing industry, more difficult economic conditions and truly global capital markets. The reach of the UK industry in providing solutions to water resource issues wherever they arise across the world is also set to increase.In this environment of constant

change, PwC offers a strong, reliable and experienced network of dedicated water industry experts, who work with companies and industry stakeholders and have consistently played a key part in the major developments shaping the industry. Our leading role in professional and standard-setting organisations puts us in an ideal position to advise on regulatory, operating effectiveness and other developments. In this document we cover areas where we, as a leading service provider in this industry, are able to help you add value to your business.

My colleagues and I look forward to engaging with you as the sector develops further.

Simon Evans Director – AssuranceUK Watergroup

PwC is a leading provider of professional services to regulated and non-regulated utility companies both in the UK and globally.


2. Our credentials

You will benefit from working with our leading team of water industry specialists.


Audit and AssuranceWe currently audit 5 of the 12 largest water and sewerage companies in the UK. In addition to statutory and regulatory audit services, we also provide services to many of the other companies in the UK water sector including providing assurance over internal controls and processes, compliance with regulatory requirements, assurance over non financial data (including environmental sustainability) and advice on acquisitions, alliances and disposals.

Advisory servicesOur insight into rapidly changing and varying utility environments helps you improve your financial and operating performance and competitiveness. We have a dedicated water advisory team with many years of experience in working in and for UK water companies.

Tax servicesWe have a strong international network with over 19,000 dedicated tax specialists in 148 countries. This means that we can support you both locally and globally, wherever you require tax advice.

Our insight into the water sector helps you improve your performance and competitiveness.

Our UK clients include:

Affinity Water*

Anglian Water*

Bournemouth & West Hampshire Water

Biwater

Cascal

Dŵr Cymru Welsh Water*

Jersey Water*

Kelda Group*

Modern Water*

Northern Ireland Water

Northumbrian Water Group

Pennon Group*

Scottish Water*

Severn Trent Water

Southern Water

Thames Water

United Utilities

Veolia Water

WaterAid*

PwC audit clients

Northern Ireland

* Denotes a client where we are the statutory auditor

Global facts• We serve the majority of the largest energy and utility companies

around the world• More than 300 partners worldwide specialise in Energy & Utilities

and over 3,000 professionals are fully dedicated to serving the industry• Our audit clients include 5 of the 12 UK largest water and sewerage

companies, and we work closely with most others in the sector


3. Serving you

Our UK Watergroup was established almost a decade ago and continues to support the effective delivery of services to our water sector clients.


We have a team of industry specialists dedicated to serving your needs through our locally based client teams. Our key objective is to provide you with the first and best information to develop strategy and respond effectively to change.

Our UK Watergroup exists to give you consistent high quality advice and enables us to speak with one voice to the industry, Ofwat and our clients. The group brings together expertise from across our full range of services including audit, tax and advisory together with all our client teams working in the sector. We supplement this focus on delivery of a relevant and effective service with a wide range of publications across the utilities sector, in keeping with our leading position in key industry, professional and standard-setting organisations.

Our UK Watergroup

• Publishes a regular Watergroup News* bulletin for all our water industry clients which includes thought leadership on topical issues.

• Leads the discussion to help you solve your regulatory and accounting issues associated with reporting to Ofwat.

• Provides direct access to the members of the Watergroup team and is committed to having regular meetings with our water company clients.

• Leads the debate on new accounting standards applicable to the UK water sector, enabling our client teams to provide you with authoritative advice in a timely manner.

• Liaises with our global Energy & Utilities network to leverage our industry expertise for your benefit.

• Holds external forums to discuss the latest news, thought leadership and technical issues in the water sector.

Watergroup News*Regular bulletins commenting on topical news stories, regulatory changes, benchmarking surveys and opportunities for companies

A sample of our local and global publications are set out below:

Global Utilities Survey 2012: A world beyond recession 12th Global Annual Power & Utilities Survey

Roadmap to reform of the water sectorProvides a Roadmap to Reform in the UK water sector, which represents a consolidated timeline of the different reform streams along with some key decision and action points

Crunch Time UpdateInfrastructure accounting under IFRS in the UK water sector

All materials can be downloaded from www.pwc.com. Alternatively if you would like to receive regular copies please contact

Simon EvansDirector, AssurancePhone: +44 (0)121 232 2289 Email: [email protected]


4. Sector issuesHow we can help

An in-depth understanding of the industry is central to the delivery of a full range of services to our water sector clients.


Some examples of our deep understanding of industry issues are set out below.

Accounting separation

Our experienceWe have assisted companies dealing with similar regulatory changes in other sectors and countries. Our work has included modification of regulatory reporting frameworks, asset valuations, reviews of regulatory compliance, transfer pricing reviews, assurance on opening balances sheets, simulated audits and delivery of transformational change to deliver sustainable business benefit.

The issueOfwat have proposed significant changes to competition in the water and sewerage sector through vertical separation of contestable markets. Furthermore Ofwat introduced accounting separation as an important first step. Regulatory reporting of water companies now includes reporting by 9 individual business segments (4 water, 4 waste water and 1 retail segment) leading to separate price controls for wholesale and retail in AMP 6. Unbundling a utility business carries significant financial reporting, data, systems, control and regulatory risks which all need to be understood and mitigated. However, it also presents significant operational and competitive opportunities for those companies which are able to use this event as a platform for strategic change.

The issueOur client was experiencing problems in debt management for measured customers. We determined that the cash collection approach was not sufficiently dynamic or robust and that poorly managed, manual sundry billing processes resulted in significant billing delays. In addition, the company was struggling to make inroads into a backlog of unprocessed correspondence.

Our experienceHaving identified the key areas for improvement, we mobilised a team of specialists to re-engineer sundry billing and collection processes and to drive improved collection performance. This ensured that the revised processes became established within the client billing and collections teams. We also established a structured backlog clearance programme to address the unprocessed correspondence. The backlog was isolated from current throughput, categorised and tracked through to resolution. Within four months, measured debtors were reduced by £18 million and the backlog of unprocessed correspondence was cleared.

Debt management


Econometrics and efficiency benchmarking

Strategic transactions and creditworthiness advice

The issueThere is ever increasing pressure on water companies to reduce costs and become more efficient. Companies are using quantitative analysis techniques to support regulatory negotiations but also more practically to identify areas for opex outperformance.

The issueThere has been extensive financial engineering activity across the utilities sector as well as divestment of portfolios and consolidation of market share. These activities twinned with the market reform agenda have raised concerns around financeability in the future.

Our experienceWe have completed extensive econometric analysis for various clients across the utilities sector. In particular we were engaged by a UK water company to advise on their opex efficiency and opportunities for opex outperformance. The work involved detailed analysis of their opex costs including:• Benchmarking of the companies unit costs to other UK water companies;• Econometric assessment of the company’s operating efficiency using

parametric and non-parametric techniques;• Comparison of their costs to establish Global Best Practices on costs by

function of the business; and• Understanding and analysing of processes and systems used to record and

monitor opex.• Based on our analysis, we outlined the main areas of inefficiencies and

recommended actions to amend these, thereby providing the company and the Board with clarity and comfort around their financial performance.

Our experienceWe have conducted extensive financial modelling exercises and scenario analyses for a number of clients to assess the impacts of uncertain events. In particular, we provided expert regulatory and specialist corporate finance advice to the pension trustees of a large UK based utility regarding the strength of the pension covenants based on the company’s respective sector activities. The advice covered the regulatory and statutory frameworks and protections as well as financial modelling of the company’s financial and credit metrics with regard to the credit worthiness of the companies under different transaction and unbundling scenarios. The work included consideration of the impacts and responsibilities associated with any significant contractual relationships.


The issueIn recent years, some companies have fared better than others in managing their relationships with third party contractors and suppliers that assist them with their capital and maintenance projects and the costs this involves. Our experience suggests that some companies have encountered difficulties in gaining optimal value for money from these contracts. This has been especially true when services, products and contractual charging regimes are complex, difficult to understand and lack transparency. In some situations there is a lack of commercial control, resulting in a loss of value and having a detrimental impact on the relationship – affecting all parties that are involved. Many of the major contracts in the water sector are in the process of being re-negotiated, following receipt of the final determinations and agreement of a new capital programme. We believe that this is an opportune time for companies to take a good look at the commercial value they are getting or should set.

Contract value leakage

Our experienceWe assisted a client to negotiate the price for the second 5 year period of an existing contract. The basis for determining the price was actual cost plus a stipulated profit. We helped assess the appropriateness and value for money of the contractor’s proposed cost base and identified areas for future efficiency savings. Savings identified by us included, overly aggressive asset attrition rates. Aligning these rates to the assets actual lives showed annual savings of £2.5 million. The proposed cost base also included £1 million of excessive provisions. Accordingly these were excluded from the proposed second period price to the contractor of our client.

The issueThe five year business planning regime allows periodic challenge of the business model and efficiency levels being achieved by water companies. Our client was no different, but intended to challenge itself at the last periodic review more so than ever before. It sought a complete review of its operating model considering process efficiencies in corporate support, field operations and supply chain functions.

Efficiency review

Our experiencePwC brought ‘in’ and ‘out of sector’ business model implementation experience and example operating approaches to the table for our client to benchmark comparable functions. This led the company into a prioritisation and decision making process which PwC was able to facilitate, helping the client to articulate its future operating model. Beyond this, and with senior executive alignment, PwC supported the company in shaping a major transformation programme to deliver the changes required.


Transformation programme management review

The issueOur client has embarked on a change agenda comprising of a number of major transformation projects planned over the next three to five years. This includes SAP for back office, assets and the front-line workforce, data centre consolidation, network & desktop upgrades in IT, telemetry solutions, multiple streams for process improvements and ERP. This agenda represents one of the most challenging that the company has ever initiated and its success is key to the company’s success.

Our experienceWith the number of projects underway the company’s change leadership faces immediate challenges to identify the aggregate risk profile and key dependencies which continue to change in size and nature over time. We supported the set up of a programme management model to enable the identification of project inter-dependencies and to assist in implementing processes that accurately report the rapidly changing risk profile for the organisation. This included assisting in the consolidation of the benefits; helping pilot the senior level programme management approach with some of the projects; set up a project level pilot programme management office; provide ongoing independent project quality assurance for selected projects and develop the basis for further refining the role of change leadership around design, organisation, technology and implementation.

Non-financial data reporting The issueCompanies in the water sector report significant volumes of non-financial data. Previous non-financial data misreporting issues in the water sector and other industries have increased scrutiny of such reporting, highlighted the importance of this data and the potentially significant consequences of misreporting.

Our experienceWe have provided extensive support to a number of companies in the water sector as they have sought to: improve the reliability and accuracy of their non-financial and regulatory reporting; establish sufficient processes and internal controls over non-financial data; and strengthen their risk management and governance procedures.The assistance and advice we have given has included: misreporting risk assessments; procedures to give comfort over the data to be reported; and assurance over the design of controls over the generation and reporting of non-financial information.


Performance transformation The issueIn a rapidly changing regulatory environment, our client sought to reduce cost, increase investment in infrastructure and provide improved services to match peers after years of under-investment and under-performance. The changes proposed were the most challenging ever undertaken by the company with the transformation programme driving unprecedented levels of change in the organisation structure, its processes, systems and requiring a re-skilled workforce, while the company built relationships with a new regulator and handled emerging regulatory requirements.

Our experiencePwC supported the client in developing the nature and scope of the performance transformation programme, the business case defined how governance and controls would support a successful implementation. We worked with the client’s team to mobilise the organisation to deliver fundamental structural, process and system changes touching all aspects of the business including operational, financial and customer impacts. PwC advised on and worked with the client on a number of areas including:Definition of the operating model and blueprint for change;Project and business case prioritisation;Programme and project management;Communications with the regulator and shareholder to support justification of the change; and Client-side change project delivery.

Corporate governance The issueOfwat have recently written to the Boards of water companies in England and Wales setting out their expectations on board leadership, transparency and governance. Ofwat expect companies to demonstrate transparently the actions they are taking to meet the highest standards of board leadership, transparency and governance. For example, many companies have a specific requirement in their licence to comply with the UK Corporate Governance Code.

Our experiencePwC have a specialist team that advise companies on Corporate Governance and best practice reporting. This team has extensive experience of providing a GAP analysis on compliance with the UK Corporate Governance Code or on reviewing best practice disclosures in the Annual Report and Accounts.


Transition to International Financial Reporting Standards or new UK GAAP

The issueListed companies have been through an IFRS conversion exercise already and other companies will need to do so as UK GAAP converges with IFRS for 31 March 2016 year-end’s at the latest.

Our experienceWe have led the water market in the IFRS implementation debate and have been extensively quoted in the press. In the early stages of IFRS implementation we performed impact analyses to benchmark companies’ readiness for its introduction as well as addressing specific industry issues as they arose. For example, in the area of accounting for infrastructure assets, we developed specific guidance for the water industry through our CrunchTime Update publication.

The issueOfwat required each company to perform a full MEAV as part of Price Review 2009. Current Cost Depreciation (CCD) derived from the MEAV exercise is currently one of the key building blocks in determining a company’s price determination. The company’s joint regulatory and engineering led MEAV assignment was running over-budget when a water company finance department approached PwC to perform a short diagnostic as to the state of the project.

Our experienceWithin a period of three months PwC provided the company with a robust MEAV model. We devised, proposed and implemented a new MEAV method by which an initial set of results were calculated up-front. This enabled management to focus their resources on the areas most materially affecting CCD. PwC also assisted the company to embed new processes to avoid repetition or inefficiency in their project, improve the asset data quality, assist in the larger regulatory compliance programme and coached management on how to achieve effective company-wide transformation.Our client obtained their MEAV result three months ahead of schedule which gave them sufficient time to model the implications of their capital investment programme.

Modern Equivalent Asset Valuation (MEAV)


The issueOver recent years in the water sector, water companies have proved attractive bid targets to, amongst others, infrastructure funds and there has been an increasing number of takeovers, often involving higher levels of gearing.

Our experienceWe have been involved with a large number of deals within the water sector across the value chain. Our services are extensive and include target identification, M&A structuring, due diligence (both on the buy side and on the sell side), transaction services, post-merger integration, strategic advice and modelling, valuations and deal execution.

Training and people development

The issueIn an evolving regulatory environment with increased focus on risk and governance, which is particularly complex for organisations in the water sector, the ability of people to respond effectively to the challenges posed with the correct skills and knowledge is paramount. Very often this is an area which has not received full focus in the past with the tendency to merely put in place processes and systems to enable compliance and risk management. However, if individuals are not able to respond appropriately these structures will be ineffective. There is now a clear body of evidence to indicate that companies need to address the skills of their people as a priority as well as ensuring the right level of commitment to change at all levels of the organisation.

Our experienceOur client training team combines expertise in ensuring that learning and development initiatives are effective in bringing about performance improvement with depth of subject matter and industry expertise. We have brought our tailored solutions to support a range of companies in the water sector, focussing on projects supporting regulatory and wider change and including financial reporting, internal control and governance developments, internal audit, fraud, accounting developments, regulatory changes, risk management and compliance.

Industry transactions, consolidation and refinancing


Preventing data compromise

The issueThe recent roll-call of data breaches is focusing boardroom attention on the risks – reputational, legal and operational – arising from ineffective information management. UK water companies hold large quantities of sensitive data. As private sector businesses, the consequences for them of data compromise extend far beyond reputational damage. Shareholders expect companies to manage this information effectively – and the industry regulators will be swift to take action against them if it can be shown that they have not done so. Awareness of information security needs to be firmly embedded throughout a business and secure information management should be recognised as a key component of good governance.

Our experiencePwC has worked with a number of organisations in an advisory or assurance capacity on data security. In particular, we have advised the Government on the issues associated with the loss on confidential personal data on Child Benefit recipients and other recent losses of confidential data through ‘The Poynter Review’. We have helped companies understand complex data environments, select appropriate controls and drive through sustainable change.

Financial controls in the utilities sector

The issueCompanies in the water sector rely heavily on the use and effective operation of controls. Examining and testing the controls of an organisation in this sector can be complex, time consuming and costly. Controls are likely to involve complex calculations and processes, spanning large time periods and crossing many systems. Testing of large sample sizes is therefore required in order to gain sufficient assurance that they are operating effectively.

Our experienceWe have completed a number of projects involving the testing and re-performance of complex processes and calculations in this industry. Through the independent remodelling of client’s business rules and processes we have helped to ensure that controls, systems and reports are operating as expected and can be relied upon to provide accurate results thereby assisting management in running the business. The systematic application of rules and processes in a controlled environment ensures that the testing of controls is efficient, consistent and repeatable. This analysis allows the identification, quantification and reporting of errors in individual transactions rather than just at a high-level and can therefore form the basis for any rectification work that may be required.


Operating and Financial Review (OFR)

Sustainability and climate change

The issueSummarising both the historical financial performance of a water company’s business, as well as outlining achievements and challenges is very important. Most companies in the sector pride themselves on open and constructive communications with stakeholders, through various means, including the annual report. The government removed the mandatory requirement for listed companies to include an OFR in their annual financial statements. However, the OFR is still required by Ofwat in the regulatory accounts of water companies. Companies are also required to include a Business Review within their Directors’ Report. The requirements of a Business Review overlap considerably with those of an OFR.

The issueSustainability and climate change has been receiving increasing attention by companies, Government and regulators alike. For UK water companies seeking to understand what this means to their businesses, key challenges include how to invest sustainably for the future, how to account for sustainability in company plans, and how best to report on corporate responsibility (CR) issues.

Our experiencePwC has worked with a number of companies in assessing and improving the quality of their narrative reporting. We have also prepared a number of thought leadership publications on this topic including reports on the benchmarking of KPIs used and held a number of roundtable events on an industry basis. For example, our publication ‘Business Review has it made a difference?’, assesses narrative reporting practices of FTSE 350 companies. It builds on previous survey, examining companies’ responses to the Business Review legislation and how they are moving towards best practices.

Our experienceWe worked with a large UK water company to develop a high level strategy for progressing value creation opportunities aligned to its business strategy and move towards a world class position in relation to CR. This involved understanding our client’s business strategically, operationally and geographically in the UK, its CR impacts, programmes and performance, and assessment of risks to the business. We assessed the current performance of the business against key indicators and goals. In suggesting the route to a world class position, we noted that the water industry faces greater challenges than many other industries from climate change.


Assurance

Advisory

Tax

Audit work Regulatory Governance & controls Training• Statutory audit

• Principal Statement audit

• Regulatory accounts audit

• June Return agreed upon procedures

• Sufficiency of Financial Resources

• Guaranteed Standards Scheme agreed upon procedures

• Price Review agreed upon procedures

• Audit of grant claims

• Bond issue assurance

Regulatory submisions

• Internal regulatory reporting assurance on data/controls (financial & non financial reporting)

Accounting separation

• Implementation, methodologies & systems

• Assurance on separation balances

Price reviews

• Business plan modelling

• Model logic reviews

• Data quality/integrity

• Controls optimisation

• Process documentation & improvement

• Testing operation of controls

• Risk Management advice

• Corporate Governance advice

• Sarbanes-Oxley 404 support

• Accounting developments

• UK GAAP

• IFRS

• Training needs analysis

• Regulatory updates

• Fraud risk training

• Executive & Non-Executive Directors training

Customers Assets Operations Regulatory• Customer process design

• Customer outsourcing strategy and implementation support

• Strategies for revenue assurance and bad debt recovery

Strategy

• Capex diagnostics

• AM strategic modelling

• Capital projects adviceDelivery

• Support to develop capital plans and turnkey contract delivery

• Investment governance

• Asset data management

• Risk analysis

• Asset valuation

• Property & facilities management

• Operational process improvement

• Mobile workforce management

• Supervisor enablement

• Management information development

• Supply chain & procurement

Annual cycle

• Data quality (financial and non financial)

• Accounting separation

• SustainabilityPrice reviews

• Business plan modelling

• Model reviews

• Economic/regulatory advice (e.g. menu regulation, regulatory strategy)

• Data quality

Risk management and reporting Compliance Property/Intellectual Property Finance & Treasury/Financing• Transition to IFRS in entity

accounts

• Removal of infrastructure renewals accounting

• Developing and documenting tax strategy

• Review of tax function effectiveness

• Improving tax processes

• Tax reporting analysis

• Accounting for share based reward

• Computation & return preparation

• Optimising capital allowances to accelerate relief

• Research and development claims and reviews

• Impact of the removal of Industrial buildings allowances

• Client tax training

• Tax planning to mitigate removal of Industrial Buildings Allowance

• Saving SDLT via a sale and leaseback with a financial institution and then selling the property on

• Saving business rates

• Relief for capital expenditure on property

• Creation of new IP in a low tax offshore IP company

• Reducing group financing costs using hedged low/high interest rate loans

• Leases, sale and leaseback

• Deferral of relief for interest and discounts

• Cross border cash management

• High interest returns on surplus cash

• Tax efficient intra group financing

• CFC management

We have set out below a summary of our capabilities in the three areas of Assurance, Advisory and Tax.


Transactions Technology & Data Other• Structuring services inc. distributable

reserves

• Bid support & defence

• Business modelling

• Financial due diligence (buy-side & sell-side)

• Post deal integration services

• Sale & Purchase Agreement advice

• Assurance on capital market transactions e.g. Accountants Reports)

• Information Technology strategy, transformation & governance

• ERP implementation assurance (SAP-ISU/Oracle)

• Data security & privacy (e.g. personal customer data)

• Data management (e.g. debt analysis)

• Spreadsheet assurance

Internal audit

• Outsourcing

• Co-sourcing

• Effectiveness reviewsAccounting

• IFRS readiness & conversions

• Accounting advice

• Renewals accounting under IAS 16

• Financial instruments & IAS 39 reviews

• Review of service concession arrangementsOther

• Project assurance

• Contract assurance

Transactions IT Finance & HR• M&A strategy

• Acquisition & divestment advice

• Due diligence (financial, commercial & regulatory)

• Post-deal services

• Corporate valuation

• Client side third party vendor management

• Strategy

• Data management

• IT sourcing

• IT transformation

• Security and controls

• Quality assurance

• Shared service strategy and implementation support

HR

• Corporate performance management

• Leadership development

• Rewards & pensionsFinance

• Finance operations effectiveness

• Risk and compliance

• Process improvement

Transactions VAT Employment• Transfer pricing policies

• Thin capitalisation reviews and negotiations

• Due diligence for acquisitions

• Accounting for deal costs

• Substantial Shareholding Exemption reviews

• Disposals of assets without a de-grouping charge

• Claiming VAT refunds going back more than 3 years following Fleming

• VAT cash flow planning

• Partial exemption – obtaining the best outcome

• Saving VAT on the costs of issuing or selling shares or debentures

• Managing indirect tax strategy and risk

• PAYE compliance, dispensations, PSA’s, P11D’s

• Employment cost reduction

• PAYE health checks and dummy HMRC reviews

• Reviewing employee status

• International mobility

• Dealing with pensions deficits

• Pensions issues and strategies

• PPF levy


5. Our industry specialist team

Our UK Watergroup regularly brings together specialists from across PwC to discuss developments and share knowledge.


Assurance Services

Ross Hunter, Partner, UK Energy, Utilities & Mining LeaderRoss is our UK Energy, Utilities & Mining Leader. He has many years of experience with large multinational companies in the oil and gas, power and wider utilities sector. Ross leads our Assurance practice in the sector.

Richard Laikin UK Watergroup LeaderRichard has 20 years experience working as a consultant in the utilities sector globally. He has led strategy, regulatory, M&A, business transformation and IT projects for many water clients including companies and regulators, and has advised potential acquirers of water companies in the UK on value considerations.

Simon Evans, Director, AssuranceSimon specialises in utility client work and has many years of experience in providing business and regulatory advice to utility companies. Simon coordinates our interaction with Ofwat and has led negotiations regarding the scope of auditors’ work and nature of reporting.

Alan Walsh, Senior Manager, AssuranceAlan is an experienced Senior Manager who leads the co-ordination and sharing of knowledge and industry developments across our teams. Alan has worked with the water sector for over five years and brings with him a thorough knowledge of this sector.

Richard Porter, Partner, Risk Assurance ServicesRichard is a partner in Risk Assurance Services. He is the firm’s UK leader on non-financial data reporting and has worked with a number of water companies in connection with June return reporting.

Advisory and Tax Services

Steve Randle, Partner, ConsultingSteve is a Partner in Consulting and leads our utilities work in this area. He has extensive experience in advising clients on utility operations and supply chain transformation.

Chris Venables Partner, PensionsChris leads our pensions advisory team and has worked with a number of water companies to provide advice on their defined benefit pension plan arrangements.

Antony Cook, Partner, ConsultingAntony has extensive experience of providing consulting advice in the water and wider utilities sector gained through advisory work for various companies globally. Antony has experience particularly in network utility operations and field force transformation – from developing operating models through to process implementation and people change, often enabled by IT.

Nicola Fomes, Manager, StrategyNicola is a manager in Strategy and has extensive experience in the water sector both from working at PwC and from when she worked at a water company.

Richard Hoare Director, Capital ProjectsRichard is a Director leading our Capital Projects team and has extensive experience of working with water companies on their capital programmes.

Reshpal Singh, Senior Manager, Corporate TaxResh is a senior tax manager with experience of advising clients in the water sector on all aspects of UK and international tax structuring.

Colin Smith, Partner, Transaction ServicesColin is a Partner in Transaction Services with extensive experience of advising private equity houses and corporate clients on both disposals and acquisitions of core and non-core operations in the water sector.

Geoff Lane, Partner, Sustainable Business SolutionsGeoff is a Partner in our Sustainable Business Solutions business and has extensive experience of working with utility companies on sustainable development.

Joga Singh, Partner, Structuring ServicesJoga leads our Structuring team and has extensive experience of providing structuring and accounting advice on complex transactions including return of value to shareholders, IPO’s, divestments and acquisitions within the water sector.

Our UK Watergroup is led by specialists with an unparalleled depth and breath of industry expertise. We have set out below brief CV’s for the key members of our group.


6.Contacts

Tax

AssuranceRoss HunterUK Energy, Utilities & Mining Leader London t: 020 7804 4326 e: [email protected]

Alan WalshSenior Manager, Assurance Birmingham t: 012 1265 5208 e: [email protected]

Richard PorterPartner, Risk Assurance Services London t: 020 7213 1158 e: [email protected]

James TaylorSenior Manager, Risk Assurance t: 015 0960 4080 e: [email protected]

Ceri ScottManager, Risk Assurane t: 012 1265 5396 e: [email protected]

Reshpal SinghSenior Manager, Tax Birmingham t: 012 1232 2089 e: [email protected]

Nick MorganPartner, Tax t: 011 7923 4258 e: [email protected]

Joga SinghPartner, Structuring Services London t: 020 7212 6677 e: [email protected]

Simon EvansDirector, Assurance Birmingham t: 012 1232 2289 e: [email protected]

For further information, please visit pwc.co.uk/water


Regional contacts

Cameron ReviePartner, Assurance Glasgow t: 014 1355 4255 e: [email protected]

Mark SmithPartner, Assurance Birmingham t: 012 1232 2299 e: [email protected]

Katharine FinnPartner, Assurance Cardiff t: 029 2023 7000 e: [email protected]

John MaitlandPartner, Reading t: 011 8938 3171 e: [email protected]

David CharlesPartner, Assurance Bristol t: 011 7928 1284 e: [email protected]

Richard BunterPartner, Assurance Hull t: 014 8258 4204 e: [email protected]

Charles JoselandPartner, Cambridge t: 077 3659 9701 e: [email protected]

Helen OrtonDirector, Assurance Southampton t: 023 8020 2323 e: [email protected]

Mark JamesPartner, Assurance St. Helier, Jersey t: 015 3483 8304 e: [email protected]

Advisory

Chris VenablesPartner, Pensions t: 020 7212 1135 e: [email protected]

Darren BloomfieldDirector, Transaction Services t: 020 7213 3402 e: [email protected]

Colin SmithPartner, Transaction Services t: 020 7804 9991 e: [email protected]

Matt TomlinsonSenior Manager, Transaction Services t: 020 7213 3911 e: [email protected]

Richard HoareDirector, Capital Projects t: 020 7804 1128 e: [email protected]

Steve RandlePartner, Consulting London t: 020 7213 3652 e: [email protected]

Peter BrookDirector, Transaction Services Uxbridge t: 018 9552 2086 e: [email protected]

Geoff LanePartner, Sustainable Business Solutions London t: 020 7583 5000 e: [email protected]

Antony CookPartner, Consulting London t: 020 7804 1932 e: [email protected]

Richard GledhillPartner, Climate Change Services London t: 020 7804 5026 e: [email protected]

Nicola FomesManager, Strategy London t: 020 7212 8047 e: [email protected]

Richard LaikinUK Water Sector LeaderLondon t: 020 7212 1204 e: [email protected]

pwc.co.uk/water

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