---
title: "Updated Analysis on Cost of Equity"
ocid: "ocds-b5fd17-00bcbadf-9721-4821-ba18-ed7eccbde899"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-00bcbadf-9721-4821-ba18-ed7eccbde899"
markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-00bcbadf-9721-4821-ba18-ed7eccbde899.md"
json_url: "https://d3tenders.com/contract/ocds-b5fd17-00bcbadf-9721-4821-ba18-ed7eccbde899.json"
source: "Contracts Finder"
current_stage: "Award"
buyer: "WATER SERVICES REGULATION AUTHORITY"
published: "2018-05-24"
---

# Updated Analysis on Cost of Equity

Buyer: WATER SERVICES REGULATION AUTHORITY  
Current stage: Award  
OCID: ocds-b5fd17-00bcbadf-9721-4821-ba18-ed7eccbde899

[View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-b5fd17-00bcbadf-9721-4821-ba18-ed7eccbde899)  
[Download OCDS JSON](https://d3tenders.com/contract/ocds-b5fd17-00bcbadf-9721-4821-ba18-ed7eccbde899.json)

## Summary

The Water Services Regulation Authority (Ofwat) is inviting tenders for the project titled "Updated Analysis on Cost of Equity", aimed at enhancing the understanding of cost metrics in a changing interest rate environment. This procurement, categorised under Business and management consultancy services (CPV code 79400000), is currently in the Award stage, following the completion of the tender period on 9th October 2017. The contract has been awarded to PricewaterhouseCoopers LLP, with a contract value of £34,110 and a duration from 12th October 2017 to 30th November 2017. The services will primarily be delivered across delivery addresses located in the West Midlands and London, United Kingdom.

This contract presents significant growth opportunities for SMEs specialising in financial consultancy, economic analysis, or management services. Companies that can successfully align with the strategic goals of regulatory bodies like Ofwat and have experience in producing detailed analytical reports are well-suited to compete in this space. Given the focus on a forward-looking assessment in a low-interest climate, firms with a strong background in financial modelling and economic consultancy will find a favourable position to engage in similar future tenders.

## Notice

We will publish our final methodology for PR19 in December 2017. As part of that, we will publish our final approach to cost of equity for the next price review, and confirm how we will analyse company business plan submissions once they are submitted in September 2018. As such, we are looking to commission an update to the analysis carried out as part of the report on refining the balance of incentives for PR19 we published in July 2017. Key Tasks We would like the successful bidder to provide an updated view on the cost of equity in a lower for longer interest rate environment on a fully forward looking basis, taking account of critique from the consultancy reports linked in section 2.2 above, other relevant consultancy reports, and other up to date market data or information. We would want this to take the form of a report that we would publish alongside the final methodology. The Contractor will provide Ofwat with all spreadsheet models used in its assessment. All spreadsheet models should be compatible with 16-bit Excel 2013.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/f4f4e922-3d94-48fa-9198-8e11e8d7fa5f |
| Notice type | Award Notice |
| Procurement type | Framework |
| Procurement category | Services |
| Procurement method | Selective |
| Procurement method details | Call-off from a framework agreement |
| Tender suitability | SME |
| Awardee scale | Large |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 24 May 2018 |
| Submission deadline | 9 Oct 2017 |
| Future notice date | Not specified |
| Award date | 10 Oct 2017 |
| Contract period | 11 Oct 2017 - 30 Nov 2017 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | £34,110 |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Not specified |
| Awards status | Active |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | WATER SERVICES REGULATION AUTHORITY |
| Locality | BIRMINGHAM |
| Post town | Birmingham |
| Postcode | B5 4UA |
| Country | England |
| ITL 1 | TLG West Midlands (England) |
| ITL 2 | TLG3 West Midlands |
| ITL 3 | TLG31 Birmingham |
| Local authority | Birmingham |
| Electoral ward | Ladywood |
| Westminster constituency | Birmingham Ladywood |
| Delivery location | TLG West Midlands (England), TLI London |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | PRICEWATERHOUSECOOPERS |

## CPV Codes

### Divisions

- 79 - Business services: law, marketing, consulting, recruitment, printing and security

### Codes

- 79400000 - Business and management consultancy and related services

## Release History

- 24 May 2018 at 08:28 - AwardUpdate - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/f4f4e922-3d94-48fa-9198-8e11e8d7fa5f
- 12 Apr 2018 at 15:28 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/f4f4e922-3d94-48fa-9198-8e11e8d7fa5f

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/f4f4e922-3d94-48fa-9198-8e11e8d7fa5f
  24th May 2018 - Awarded contract notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/Attachment/fbd3114e-9a00-4d8f-8346-1ecdfae28cbb
  Contract

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-b5fd17-00bcbadf-9721-4821-ba18-ed7eccbde899. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-b5fd17-00bcbadf-9721-4821-ba18-ed7eccbde899.json.