Brexit has injected another level of uncertainty into the municipal water sector, requiring all foreign investors to reassess their UK portfolios. Overall, the municipal water sector responds more gradually to market and policy changes than other sectors, and the AMP6 guarantees predictability in terms of infrastructure investment levels through 2020. However, The UK water industry will have to find new funding channels and a rationale to support its leading position in R&D.
In this Market Insight, Bluefield water experts analyze the impact of this major market development looking at these key questions and more:
- What is the near-term financial impact of Brexit?
- Will firms re-evaluate their UK utility ownership?
- How will this impact smart water innovation?
- What alternative infrastructure funding sources may be required?
- The UK water industry will have to find new funding channels and a rationale to support its leading position in R&D.
- The EU’s guidance on standardization and environmental regulation will likely be less relevant going forward as the UK evolves more autonomously.
- The prospect of increased isolation from Europe for foreign players reduces the UK’s attractiveness for service providers and engineering and construction firms.