Position type: Permanent
Job reference: 414635
Location: Birmingham (B5 4UA) or London (E14 4HD) based with hybrid working
Salary: £38,764 - £52,000
Closing date: Thursday 17th July 2025 at 23:55
Job title: Financial Economist
Join Ofwat as a Financial Economist in our Risk & Return Team
About Us
We are Ofwat, the Water Services Regulation Authority, a non-ministerial government department responsible for regulating the water sector in England and Wales. Our work has genuine significance – no other organisation does the work we do. It’s unique and meaningful: keeping our water flowing; ensuring water bills don’t cost a penny more than needed; holding water companies to account. Come and work at the source of everyday life.
The Role
We are looking for a Financial Economist to join our Risk and Return team. You will initially join the Allowed return on capital workstream, supporting work concerning the allowed return on equity.
In February several companies asked us to refer our PR24 determinations to the Competition and Markets Authority (CMA) for a redetermination, a process that could potentially last until March 2026. All companies have challenged our approach to setting the allowed return on equity. The successful candidate will therefore initially support Ofwat in making representations to the CMA to support our position, responding to its enquiries, and in considering its redetermined proposals.
The role will be impactful. The allowed return is responsible for approximately a quarter of the average water bill; thus fractions of a percentage point can have an impact of hundreds of millions of pounds. In addition, the results of the CMA appeals process are likely to have important repercussions to the way the allowed return is set in other economically regulated sectors (e.g. energy, telecoms, and aviation).
About You
Below are some of the key essential experience, skills & knowledge required for this post:
- Applied experience with statistical software packages used in financial economics (for instance one or more of: STATA, R, EViews, Python).
- Understanding and working knowledge of financial economics and/or corporate finance related to the cost of equity, specifically the Capital Asset Pricing Model.
- Experience in applying financial economics and/or financial analysis in a public sector or commercial setting (e.g. regulator, competition authority, consultancy or regulated firm).
- Advanced Microsoft Excel skills (VLOOKUP, SUMIFS, AVERAGEIFS, INDEX(MATCH) and in addition a familiarity with array formulae and VBA or willingness to learn.
- Good written and oral communication skills, including the ability to understand and concisely explain complex issues in non-technical language.
Why Join Us
- Meaningful Impact: Contribute to our purpose to drive water companies to deliver more for customers and the environment.
- Innovative Work Environment: We embrace agile working and a culture of trust, flexibility, and collaboration.
- Development Opportunities: Gain valuable experience and develop your skills in a supportive and dynamic setting.
- Work-Life Balance: Enjoy the flexibility of working from home combined with meaningful collaboration in our London or Birmingham offices.
Other Benefits
- Excellent employer pension contribution of over 28%
- 25 days’ annual leave, increasing to 30 with each year of service, plus bank holidays and an extra 2.5 days of privilege leave.
- Access to exclusive discounts on a variety of goods and services, including retail outlets, theatre tickets, holidays, insurance, and a gym membership.
- Fees paid for membership of relevant professional bodies.
- Up to 3 volunteering days per year.
- Recognition vouchers scheme rewarding your hard work.
- Generous shared parental leave and pay supporting your family life.
To read more about the role and selection process, please follow the link to apply.
