All of our infrastructure businesses face a regulator in some way, whether it is through direct regulation of price and quality outcomes, or ‘light-touch’ regulation, or other aspects of regulation and compliance. The threat of an adverse regulatory decision could negatively influence the investment outcomes. These businesses all work diligently with regulators to ensure that the outcomes sought (most commonly around outcomes for end users) are maintained and delivered by these businesses, without the need for any more adverse regulatory rulings.
At a new development at one of our airports, which a low-lying coastal site, the increased flood risk from climate change meant that the design of a new on-airport commercial development required enhanced flood protection measures etc. to ensure the asset could perform to its expected life.
At one of our bulk liquid storage terminals businesses, located amongst port infrastructure, the threat of rising sea levels has led the business to include this consideration in its discussions and negotiations with the relevant landlord around port infrastructure planning going forward.
The undergrounding of electricity cables in one of our distribution grids is a direct result to reduce potential physical impact caused by more frequently occurring severe storm events.