Financial Economist (Principal Debt Specialist)

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Ofwat

We regulate the water sector in England and Wales, https://www.ofwat.gov.uk/jobs/make-a-splash/

Requirements of the role

We are Ofwat, the Water Services Regulation Authority, a non-ministerial government department responsible for regulating the water sector in England and Wales.

We have an opportunity for a Financial Economist, Principal Debt Specialist to join our Risk & Return Team within Price Review Directorate.

The water sector is entering a new chapter. Following the Independent Water Commission’s Final Report and subsequent White Paper – ‘New Vision for Water’, the UK government has set out a bold new direction – one that brings together expertise from across the sector to deliver better outcomes for customers and the environment.

Ofwat is working in collaboration with the government and other regulators to help establish a new body for England, combining our strengths with those of the Drinking Water Inspectorate, the Environment Agency, and Natural England. We’re also continuing to engage with the Welsh Government to support future decisions for Wales.

Job description

We are seeking an experienced Financial Economist or Corporate Finance Debt Specialist to join our Risk & Return team within the Price Review Directorate. This role will play an important role in determining our methodology governing the allowed return on capital for PR29, which currently accounts for around a quarter of the average customer bill.

The role will involve contributing to the design of a methodology for setting the cost of debt allowance. The ultimate objective is an allowance-setting process that fairly remunerates companies, while maintaining incentives to issue debt efficiently and prudently. The subcomponents of this allowance include:

  • Cost of embedded debt: The cost of debt incurred prior to the control period.
  • Cost of new debt: The cost of debt to be issued in the ensuing control period.
  • Share of new debt: The weight of new debt in the weighted average cost of debt allowance, influenced by refinancing and investment needs.
  • Issuance & liquidity costs: Non-interest costs borne by companies

In due course we expect the role will also involve providing ad hoc advice on cost of debt matters to other directorates within Ofwat whose work touches on this area.

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 Location

London, Birmingham

 Contract type

Fixed term, Loan, Secondment

 Profession

Accountant, Analysis, Economics, Finance

 Working pattern

Flexible working, Hybrid

 Closing Date

14/04/2026