Customers to benefit by £2B from Ofwat changes
Customers and the environment are set to gain major benefits, as Ofwat today confirmed changes to the way it regulates the water and sewerage sectors. The changes, outlined in the regulator's Setting Price Limits for 2015-20 document, will benefit customers by around £2B.
The changes, which follow widespread consultation, set out Ofwat’s approach to setting limits on how much water and sewerage companies in England and Wales can charge their customers from 2015 to 2020.
The benefits include the water companies focusing more closely on their customer-facing activities through separate price controls. There are also plans to encourage companies to use water more efficiently through trading, with water being moved across company and regional boundaries to where it is scarce.
Ofwat wants the water companies to "become smarter" in how they manage their water, saying this will help keep costs down, and better protect the environment. This strategy will also help the sector meet the significant challenges of managing water when there is increasingly volatile weather and population growth in areas where supplies are already stretched.
Commenting on Ofwat's, Regina Finn, Ofwat chief executive officer said: “We want companies to move away from ticking regulatory boxes and to concentrate instead on the importance of delivering for customers now and in the future including the environment. Our changes will drive a more efficient, dynamic, and customer-focused sector, developing long term solutions to meet long term challenges. This is good news for customers, the environment and the economy.
“It’s now time to deliver. Companies need to listen to their customers and come up with plans that show how they will meet the challenges facing the sector, such as affordability and long-term sustainability.”
- Labour plans to re-nationalise water sector The Labour party plans to re-nationalise the UK water industry if it comes to power after the General Election on 8 June. Read More >
- Southern Water faces record £176m Ofwat levy over sewage discharges Southern Water faces a record £176m penalty from Ofwat in the current price review process after the regulator expressed... Read More >
- Bristol Water appeals to CMA over final determination Bristol Water has rejected Ofwat's final determination and asked the regulator to refer their decision to the Competition... Read More >
- The end of 'business as usual' in the water sector? James Connolly, head of partnerships at digital asset and works management company eviFile, assesses the message coming... Read More >
- Ofwat's assessments keep water companies in check The regulator's initial assessment of water companies' business plans reveals that a tight financial settlement is on the... Read More >
- Ofwat's PR19 assessments: How the industry reacted After Ofwat published its initial assessments of water companies' business plans for 2020-25, we look at the responses... Read More >
- Offsite build powers South East Water's £22M treatment works expansion South East Water's expansion of Bray Keleher Water Treatment Works is in full swing, with offsite manufacture aiding... Read More >
- Comment: Capital Maintenance comes to the fore The tight cost of capital set by Ofwat for PR19 will mean water companies will need to place the emphasis on maintenance... Read More >