Principal Economist, Cost Assessment

OFWAT; Birmingham; Hybrid; GBP 60,000 - 80,000; Full time

Job summary

A regulatory authority in the UK is seeking a Principal Economist to lead cost assessment efforts and contribute to policy development. This role requires significant experience in economics, advanced problem-solving skills, and proven stakeholder management capabilities. The position offers a hybrid work model with competitive benefits, including generous leave and employer pension contributions. Closing date for applications is November 23, 2025.

Benefits

25 days annual leave plus bank holidays

Excellent employer pension contributions

Access to exclusive discounts

Volunteering days

Recognition vouchers scheme

Generous parental leave and pay

Qualifications

• Significant experience applying economics in a regulatory context.
• Ability to address complex issues using quantitative and qualitative methods.
• Experience managing large projects and working with diverse stakeholders.

Responsibilities

• Lead development of assessment approaches for expenditure allowances.
• Contribute to policy development on cost benchmarking and incentive design.
• Engage with various stakeholders to provide robust recommendations.

Skills

Experience in economics within a regulator or consultancy

Advanced problem-solving skills

Cost assessment experience

Excellent stakeholder management

Outstanding communication skills

Education

Undergraduate degree in economics or numeric discipline

Job description

Join Ofwat's Price Review as a Principal Economist, Cost Assessment

Office Location: London (E14 4HD) or Birmingham (B5 4UA) with hybrid working

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. Following the Independent Water Commission's final report, 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.

We are 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.

While these changes take shape, our mission remains the same: to hold water companies to account, drive performance, and ensure the sector delivers real value for customers, communities, and the environment. If you're passionate about making a difference, this is a unique moment to join us and help shape the future of water, and together we can continue to make a positive impact.

The Role

We're looking for a Principal Economist to join our cost assessment team. The role is full of influence and exciting challenges.

The cost assessment team plays a pivotal part in shaping the next price review, setting expenditure allowances, and developing policy in areas such as incentive design and improvements to the regulatory framework. As Principal Economist, you will take a leading role in developing our approach to setting base expenditure allowances at the next price review, including related policy development. You will work closely with principals, senior associates, and graduate associates, and collaborate across teams.

You will:

• Play a lead role in the development and implementation of our approach to assessing base expenditure at the next price review, drawing on lessons from PR24 and the recommendations of the Independent Water Commission (IWC).
• Contribute to policy development in areas such as incentive design, cost benchmarking, and wider improvements to the regulatory framework.
• Work with colleagues to ensure robust, evidence-based recommendations for expenditure allowances.
• Engage with stakeholders across the sector, including water companies, other regulators, and internal teams.

Base expenditure covers wholesale and retail activities and includes:

• routine, year‑on‑year costs, which companies incur in the normal running of their businesses to provide a base level of good service to customers and the environment;
• expenditure on maintaining the long‑term capability of assets;
• expenditure to improve efficiency; and
• expenditure to comply with current legal obligations

This is an exciting time to join the team, with many opportunities to learn, develop, and shape the future of economic regulation, ultimately improving outcomes for customers and the environment. For example, two key recommendations in the IWC report are the introduction of a supervisory approach to setting expenditure allowances (IWC18) and the separation and ringfencing of opex and capital maintenance expenditure allowances (IWC19).

About You

Below are some of the key essential experience, skills & knowledge required for this post:

1. Lead criterion 1: Significant experience of applying economics in a regulator, competition authority, consultancy or regulated company, with a strong interest in and aptitude for economic regulation.
2. Lead criterion 2: Advanced problem solving skills, drawing on technical knowledge and both quantitative (including econometrics) and qualitative techniques to address complex issues.
3. Lead criterion 3: Experience of cost assessment and developing improvements to regulatory frameworks or incentive design in the water sector or other regulated utilities.
4. Undergraduate degree (or higher) in economics, a numeric discipline, or another relevant field.
5. Experience of managing large and/or complex projects, including oversight of independent consultants and delivery to tight deadlines.
6. Proven ability to work effectively in multi‑disciplinary teams to deliver projects in a complex stakeholder environment and at pace.
7. Excellent stakeholder management skills, demonstrated by influencing and building relationships with a range of internal and external stakeholders.
8. Outstanding written and oral communication skills, including the ability to explain complex analysis clearly and confidently to non‑technical audiences.

Why You Should Join Us:

• People Centric: Our people are at the heart of Ofwat and everything we do – we ensure all voices are heard and treat each other with respect; you'll be given the autonomy and the support to do your role in the best way.
• Innovative Work Environment: We embrace agile and new ways of working and have a culture built on 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 the benefits of in person collaboration in our Birmingham and London offices.
• Excellent employer pension contributions.
• 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.

Follow the link to apply for full details about the role. Please ensure you have submitted your application in full before the below deadline.

Closing date: 23.55 on 23 November 2025.