In last month’s issue, New Power discussed new financing structures in the energy sector: TTT, CfD, RAB and SPV. Lawyers Addleshaw Goddard compared the latter with a new counterpart in water – DCP.

In parallel with Ofgem’s special purpose vehicle (SPV) model, Ofwat has developed ‘Direct Procurement for Customers’ (DPC), designed to allow larger water infrastructure projects to secure competitive financing. Under DPC, a water company runs a competitive tender for a third party to design, build, finance, operate and maintain new infrastructure.