PR04 - Phase two - Assessment of draft business plans and market research
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PR04 Phase two: Assessment of draft business plans and market research


During phase 2 of the periodic review, the water companies submitted their draft business plans and we conducted important market research into customers' priorities for the price review.

The draft business plans were received in August 2003 and we published a summary of the main issues from the draft plans in October. Following our analysis of the draft business plans we provided guidance to Ministers on the impact of alternative programmes for further improvements in drinking water and environmental quality.

In December 2003 we published the results of joint research into water and sewerage customers' views on the services they could receive in 2005-10. Customers commented on proposed service levels in the water environment, drinking water quality, water and sewerage services and customer services as set out in the companies' draft business plans. Most customers stated that they were definitely or probably willing to pay the price increases associated with the plans, but a significant proportion were not. One in 10 customers said that they could not afford the increases.

In March 2004 we received the Principal guidance from Ministers (Defra and Welsh Assembly Government) on the scale and pace of the quality programme. The size of the environment programme was higher than that set out in the companies' preferred strategy in their draft business plans.

This phase is now complete.

Key documents relating to this phase are:Press Notices/Information bulletins
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