Every five years we set limits on the prices the water companies can charge their customers. We make sure that these charges represent the best value for consumers and allow efficient companies to provide a sustainable service.

In 2009 we set price limits for customers’ bills for each year between 2010 and 2015. The main milestones in the price review are set out in the diagram below. Clicking on the puzzle pieces will take you to the main document at each milestone.

Methodology

Our methodology for the 2009 price review was set out in Setting price limits for 2010-15: Framework and approach. We adopted broadly the same approach as in previous price reviews. However this time there was a greater focus on setting price limits within the context of the long-term future of the water and sewerage sectors.

We carried out the price review in four phases. You can find the documents published in each phase from the links below:

• Phase 1: Preparation
• Phase 2: Setting the scene
• Phase 3: Decisions and determinations
• Phase 4: Implementation of price limits and evaluation of review

Information submissions

For the 2009 price review we asked companies to:

• set down and explain in a consistent and fair way their applications for price limits;
• take account of all the known issues that they face in 2010-15 and beyond; and
• inform us of all the relevant factors that we need to review the challenges facing the company and determine fair and reasonable price limits for the customer and the company consistent with our statutory duties.

The companies’ main information submissions were their strategic direction statements, and their draft and final business plans. The strategic direction statements described the companies’ long-term plans, while the draft and final business plans set out their immediate plans for the period 2010-15.

Consumer research

Consumer research was commissioned jointly with several other organisations at different stages in the 2009 price review. The research was used to inform companies' draft business plans and also to explore customers' views on companies' proposals and their impacts on bills and outputs.

Competition Commission referral

When we set price limits, companies can choose either to accept their determination or refer it to the Competition Commission. One company, Bristol Water, chose to refer its determination. The Competition Commission re-determined its price limit in August 2010.

Download the Competition Commission's final determination.