Ofwat has confirmed the appointment by its Board of PwC as its delivery partner for its 2014 price review.
PwC will provide advice, analysis and assurance through the price control process. The appointment follows the regulator’s changes to the way it sets prices to create a more efficient, dynamic and customer focused sector. Independent analysis shows that these changes could generate more than £2 billion of benefits by setting separate retail controls and encouraging more water trading alone.
Sonia Brown, Ofwat’s Chief Regulation Officer, said:
“Changing how we regulate water companies is going to be good news for customers, the environment and the economy. We are already seeing a change in the culture of the sector and we want companies to take ownership of their business plans and engage more effectively with their customers.
“The support of PwC will help ensure we are able to get the best deal possible for customers and the environment over the next five year period.”
David Lancefield, Head of Economics and Policy at PwC, said:
“We recognise the vital importance of the water industry for UK consumers, business and the environment. We are delighted to have been chosen to help Ofwat conduct a pricing review that supports its clear goals to create a more efficient, effective and environmentally friendly sector.”
Ofwat’s Board appointed PwC following a competitive process. The contract runs from now until the end of 2014. As part of the contract, PwC will be working with its partners CEPA and Jacobs.
Ofwat is due to carry out its risk based review of each company’s business plan from December to March in 2014. Ofwat will set final limits on the prices companies can charge by January 2015.
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Notes to editors
- The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will protect the interests of consumers, promote value and safeguard future water and sewerage services by allowing efficient companies to carry out their functions properly, and finance them.
- Ofwat published its final methodology for the 2015 – 20 price review in July 2013.
- The contract is due to finish when Ofwat sets final price limits. Ofwat is due to set final limits on how much companies can charge by January 2015. The fees to PwC consortium are capped at £6.45m.
- Media enquiries to Ofwat Press Office on:
Benedict Fisher 0121 644 7642 / [email protected]
Harbinder Babra 0121 644 7616 / [email protected]