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Price review 2009
One of Ofwat's main tasks is to set price limits for the water and sewerage companies in England and Wales. We do this in order to protect consumers from the monopoly providers of these services. However it is also our duty to enable efficient companies to finance their functions. We make sure that consumers receive reliable services and value for money and that each company is able to meet its environmental obligations now and in the future. We review price limits every five years. Prices were set at the price review in 2004 for the 2005 – 2010. This price review (PR09) covers the five years from April 2010. We have organised the review in four phases, starting in October 2007
How does price setting work? We set price limits for each company by forecasting the minimum revenue that it is likely to need to run its business efficiently. We then compare this with the revenue the company is expected to receive and calculate the percentage change needed after allowing for inflation. We set out the minimum service that we expect each company to deliver but each company decides how to deliver these services. What are Ofwat's objectives for the 2009 review? We will set price limits that deliver the best value for water consumers and allow efficient water companies to provide a sustainable service into the future. Price review 2009 milestones
We have set out the timetable for the review in the Ofwat Forward Programme (PDF - 360Kb) The last review took place in 2004, for information see our PR04 section.  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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