PN 06/14: Ofwat publishes draft determinations for Northumbrian Water and Dŵr Cymru

30 May 2014

Ofwat today published draft determinations for Northumbrian Water and Dŵr Cymru as part of the 2014 price review. The draft determinations set out the proposed prices the companies can charge their customers for water and sewerage services from 2015-2020.

Under the current plans submitted, Dŵr Cymru will decrease customer bills by 5% in real terms over the next price control period 2015-2020 while investing more than £2.5 billion. Northumbrian Water will reduce customer bills by 2% over the five-year price control, with investment of £2.7 billion. This investment will maintain and improve services for customers and the environment.

Ofwat’s Chief Executive, Cathryn Ross, said:

“We recognise that public trust and confidence is essential if water and sewerage companies are going to remain legitimate in the eyes of their customers. These draft determinations will help maintain and build that trust and confidence. Under this price review we have seen companies rising to the challenge and developing innovative and efficient solutions for their customers both now and in the future, and for the environment.”

Ofwat’s Chief Regulation Officer, Sonia Brown, said:

“We have challenged and scrutinised the business plans Northumbrian and Dŵr Cymru submitted. Both companies are offering their customers improved outcomes at a more affordable price. We have identified a small number of areas where it has been necessary for us to intervene to protect customers’ interests. Overall we are committed to achieving the best possible outcome for customers from the PR14 process.”

Consultation on these draft determinations will close on 4 July, and representations from all stakeholders are welcome. South West Water and Affinity Water as “enhanced companies” received their draft determinations on 30 April. All other companies will receive their draft determinations in August 2014. Final determinations for all companies will be published in December 2014.

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Notes to editors

  1. 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.
  2. Every five years companies make proposals for the price, investment and service package that customers receive. As companies are monopolies, Ofwat reviews these plans and makes final determinations on these plans, including controlling the price they can charge customers. Ofwat is due to announce final determinations for all companies in December 2014 for the period 2015 – 2020. Further details on the price review process can be found www.ofwat.gov.uk/pricereview
  3. Water companies submitted their business plans to Ofwat on 2 December 2013. On 4 April 2014, Ofwat published the full results of its risk based review, and published draft determinations for South West Water and Affinity Water on 30 April.
  4. This release may be of interest to those following these companies: Affinity Water, Anglian Water Services Ltd, Bristol Water plc, Cholderton and District Water Company Ltd, Dee Valley Water plc, Dŵr Cymru Cyfyngedig (Welsh Water), Northumbrian Water Ltd, Portsmouth Water plc, Sembcorp Bournemouth Water Ltd, Severn Trent Water Ltd, South East Water Ltd, Southern Water Services Ltd, South Staffordshire Water plc, South West Water Ltd, Sutton & East Surrey Water plc, Thames Water Utilities Ltd, United Utilities Ltd, Wessex Water Services Ltd, and Yorkshire Water Services Ltd.
  5. Media enquiries to Ofwat Press Office on:
    Benedict Fisher 0121 644 7642 / [email protected]
    Harbinder Babra 0121 644 7616 / [email protected]