15 December 2016
Ofwat today publishes its final determinations for the price review 2016 (PR16), in preparation for the opening of the retail water market for the business, public and charity sector in April 2017.
This builds on the price caps set at our last price review in 2014 (PR14). It limits what companies can charge business customers on existing tariffs when the retail market opens for competition next year.
If a water company leaves the market, their customers will automatically transfer to a chosen retailer, unless they decide to move to a new retailer. Customers are protected as they will remain on the same tariff regardless of which company they are with, until the customer decides to change the deal they are on.
David Black, Senior Director at Ofwat, says:
“When the market opens, it will provide great opportunities for business customers to get the deal that best suits them.
“As the market becomes established, it is sensible that we have to put in place safeguards to protect all customers. The price limits set in PR16 ensure that no customer will be worse off after the market opens.”
The new price controls will come into force when the market opens in April 2017 and will be in place for the next three years.