ECA is working with the UK’s Consumer Council for Water (CCWater) to develop an understanding of ‘fair profits’ in the UK water sector, as well as a strategy of how CCWater should engage with Ofwat, water companies and the sector’s other stakeholders. The strategy is based around an understanding and function of the Weighted Average Cost of Capital, and the flexibility the WACC-based regulatory framework provides for companies to work in the best interests of consumers.