Southern Water accepts Ofwat's final determination
Southern Water has confirmed that it will accept the final determination set out by Ofwat.
In a statement the company said: “In spite of the very challenging PR19 financial determination by Ofwat, in particular the level of the allowed cost of capital and a punitive Outcomes Delivery Incentive (ODI) regime, the Southern Water board has reluctantly come to the conclusion that the significant disruption and substantial costs of a CMA referral would not be in the ultimate interest of Southern Water’s customers.
“The Board is confident that the Southern Water business plan for 2020-2025 represents a step change in the company’s stated intention of becoming brilliant at the basics and sets out a pathway to a resilient water future for the South East, an area already categorised by the Government as being in water stress.”
The company added that the twin challenges of population growth and climate change will “test the company’s existing and planned networks further than they have ever been.”
“As such, Ofwat’s quite stringent determination adds to the increased overall balance of risk that the business faces over the next five years, but the company is now focussed on improving efficiency and targeting investment to support greater resilience and growth,” the statement concluded.
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