02 Jun 2014
Ofwat has published draft determinations for Northumbrian Water and Dŵr Cymru as part of the 2014 price review. The draft determinations set out the proposed prices the companies can charge their customers for water and sewerage services from 2015-2020.
Under the current plans submitted, Dŵr Cymru will decrease customer bills by 5% in real terms over the next price control period 2015-2020 while investing more than £2.5 billion. Northumbrian Water will reduce customer bills by 2% over the five-year price control, with investment of £2.7 billion. This investment will maintain and improve services for customers and the environment.
Ofwat’s Chief Executive, Cathryn Ross, said: “We recognise that public trust and confidence is essential if water and sewerage companies are going to remain legitimate in the eyes of their customers. These draft determinations will help maintain and build that trust and confidence. Under this price review we have seen companies rising to the challenge and developing innovative and efficient solutions for their customers both now and in the future, and for the environment.”
Ofwat’s Chief Regulation Officer, Sonia Brown, said: “We have challenged and scrutinised the business plans Northumbrian and Dŵr Cymru submitted. Both companies are offering their customers improved outcomes at a more affordable price. We have identified a small number of areas where it has been necessary for us to intervene to protect customers’ interests. Overall we are committed to achieving the best possible outcome for customers from the PR14 process.”
Consultation on these draft determinations will close on 4 July, and representations from all stakeholders are welcome. South West Water and Affinity Water as “enhanced companies” received their draft determinations on 30 April. All other companies will receive their draft determinations in August 2014. Final determinations for all companies will be published in December 2014.
Story appears courtesy of Ofwat.