Cost Assessment for PR19 – a consultation on econometric cost modelling

Cost Assessment for PR19 – a consultation on econometric cost modelling

Published date: March 29, 2018
Closing date: Friday May 4th, 2018 5:00pm

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About Consultation

This is a consultation on a range of econometric cost assessment models for the 2019 price review (PR19) for water and wastewater companies in England and Wales.

In December 2017 we published our methodology for PR19. We set out in our methodology that an important element of our approach to cost assessment is the development of econometric models. We use econometric models to carry out a comparative efficiency assessment of the sector. This assessment plays a key role in setting an efficient level of expenditure for water companies.

This consultation includes models proposed by us as well as models proposed by water companies.

Alongside this consultation we publish a report we have commissioned from CEPA Ltd on econometric models for wholesale water and wastewater controls. This consultation includes some of the models proposed by CEPA.

The closing date for the consultation is 4 May 2018. Please email responses to CostAssessment@ofwat.gsi.gov.uk.

Supporting documents