Water shares rise on hopes of agreement with Ofwat on price controls

UK Water shares have bubbled up on hopes an agreement can be reached with the industry regulator over new licence proposals.

Ofwat issued a clarification of its proposals for licence changes and changes to price controls, which analysts said struck a more conciliatory tone than before. An earlier statement from the regulator on the issue hit shares in the sector hard. Now Ofwat has said it recognises the water and sewage sector needs to remain attractive to investors, and it encouraged them to discuss the planned changes further. 

In reaction to the Ofwat statement, United Utilities is up 15p at 674p, the biggest riser in a FTSE 100 which has edged around 6 points lower.Severn Trent is 22p better at £15.69 while Pennon has put on 5p to 609p.

http://www.guardian.co.uk/business/marketforceslive/2012/nov/21/united-utilities-severn-trent-pennon-ofwat