Woodford: Investors got 'nailed' by water regulator

Invesco Perpetual's Neil Woodford, one of the largest investors in UK water companies, has warned the regulator's tough pricing risks driving shareholders away from the industry.

Woodford, the head of investment at the group, believes water regulator Ofwat's November pricing review had taken providers of equity capital "for granted" and said it had "behaved like Robin Hood". "We've been nailed by this review," Woodford told the Financial Times. "The next time we come up for a water review, don't expect shareholders to be holding the baby." Listed water companies posted rising profits this results season, but since the end of their financial years, fresh restrictions from Ofwat - which lays down every five years how much they can charge consumers - have now ...