This site uses the UK Government AccessKeys system
|
|
What's new | Publications | Media centre | Price review | FAQs Update alerts | Consumer issues | Site map | Competition | Contact us |
| ||||||||||||||||||||||||||||||||||||||
Price review 2009
PR09/02 18 October 2007 Dear Colleague MENU REGULATION PROPOSALS FOR PR09 We published a discussion paper on new approaches to expenditure and incentives in May 2007, followed by a workshop with stakeholders in June 2007. We received a good level of feedback and engagement with our initial thinking. Stakeholders clearly identified menu regulation as the most promising alternative approach to refining PR04 methods for setting expenditure and efficiency assumptions, and one that we should explore further. We have therefore developed our thinking on how we might use a menu regulation approach in the water sector. This has been informed by work carried out by our consultants Oxera, and their report will be available shortly on our website: http://www.ofwat.gov.uk/aptrix/ofwat/publish.nsf/Content/OxeraReport_Oct07 As set out in 'Setting price limits for 2010-15: Framework and approach', we are proposing menu regulation as our preferred approach for all capital expenditure. A chance to share early views We are inviting companies and other stakeholders to consider the proposals around menu regulation set out in this letter, and to send us their early views by 22 November. We will then use these as an input to a stakeholder workshop we plan to hold in Birmingham on 5 December, to expose the particular issues raised in this area. We feel that such an approach will allow for full exposure and understanding to be developed before we confirm our approach for PR09 in March 2008. Please send your early views to: kay.webb@ofwat.gsi.gov.uk by 22 November 2007. Of course you are also free to send us your views on the proposals in this letter with your consolidated response to 'Setting price limits for 2010-15: Framework and Approach. A Consultation Paper'. GEORGE DAY Head of Asset Strategy  |
© Crown copyright |
Disclaimer & Privacy Statement |