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Ofwat confirms Northumbrian Water and Welsh Water for early determination

Water regulator Ofwat is to proceed with early draft determinations for Northumbrian Water and Dŵr Cymru Welsh Water.

In March Ofwat invited companies that did not pre-qualify for enhanced status under the risk-based review to submit revised business plans by 2 May and request a draft determination by 25 June.

To accept a request for an early draft determination, Ofwat said that companies must submit further information addressing outstanding queries and be of a sufficiently high quality to form the basis of the draft determination.

Northumbrian Water and Dŵr Cymru submitted revised business plans by 2 May.

In a statement, Ofwat said: "Ofwat has examined these plans and considers that both companies have applied best endeavours to address the gaps identified under the risk-based review. Ofwat will proceed with early draft determinations for Northumbrian Water and Dŵr Cymru."

These will be published by 25 June, said Ofwat.

Dŵr Cymru's revised business plan proposed a 6% reduction before inflation in its average household water and sewerage bills by 2020 whilst maintaining record investment at £1.5 billion to maintain and improve its services.

Dŵr Cymru's chief executive Chris Jones said: "This business plan will drive improvements to the services we provide to our customers, maintain high levels of investment, offer even better value for money and a lower water bill.

"Despite cutting bills further, we've not cut investment or lost any of the benefits of our original plan. As a company without shareholders, our unique model in the utility industry ensures that all gains go to customers and the reduction in the bill has been achieved through some changes to the way in which we finance the plan, including a lower cost of capital."

Author: Dean Stiles,
Topic: Policy & Regulation
Tags: ofwat , business , Dwr Cymru Welsh Water , Northumbrian Water

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