Regulatory capital value updates

The regulatory capital value (RCV) is one of the critical components underlying price limits. You can find out more about the RCV and the basis for its calculation in RD 04/10: Regulatory capital values 2010-15.

The table below shows updates the RCVs for our determinations in 2009 and 2014 and changes in inflation. These tables, including the industry totals, do not include the RCV for Bazalgette Tunnel Limited (Tideway).

Financial Flows allowances

From 2020-21 onwards, the allowances, for certain expenditure types,  to be used in the completion of Table 1F – ‘Financial Flows’ and Table 4C – ‘Impact of price control performance to date on RCV’ in the APR are contained in Financial Flows Data Source.

Year  Financial year-end RPI Financial year-average RPI Regulatory capital values (in-year prices) Appointee Regulatory Equity (in 2012-13 prices) RCV updates models



RCV models 2023-24



RCV models 2022-23

2021-22 RCV2022

(updated 22 June 2022)

RCV models 2021-22
2020-21 RCV2021

(updated June 2021)

RCV models 2020-21
2019-20 292.6 290.642 RCV2020 REQ2020
2018-19 285.1 283.308 RCV2019 REQ2019
2017-18 278.3 274.908 RCV2018 REQ2018
2016-17 269.3 264.992 RCV2017 REQ2017
2015-16 261.1 259.433 RCV2016 REQ2016
2014-15 257.1 256.667 RCV2015
2013-14 254.8 251.7 RCV2014
2012-13 248.7 244.7 RCV2013
2011-12 240.8 237.3 RCV2012
2010-11 232.5 226.5 RCV2011
2009-10 220.7 215.8 RCV2010
2008-09 211.3 214.8 RCV2008

Severn Trent and Dee Valley licence changes

In PN 27/18: Severn Trent and Dee Valley licence changes to take effect following NAV applications we set out the variations and modifications to the Conditions of Appointment (‘licences’) of Severn Trent Water Limited and Dee Valley Water Limited, and granted a new wastewater licence to Dee Valley Water. This allowed Dee Valley Water to become a water and wastewater services company based wholly in Wales and for Severn Trent Water to become a water and wastewater services company based wholly in England. This meant that Severn Trent Water became the water supplier for Dee Valley Water customers located in England, which includes those in Cheshire, Shropshire and the Wirral. Dee Valley Water now provides water and wastewater services to Severn Trent Water’s Welsh customers in Powys and Monmouthshire.

The changes to both companies’ conditions of Appointment took effect from 1 July 2018. For consistency we have continued to update the RCVs for Severn Trent and Dee Valley as determined at PR14. However, in order to understand the RCVs for the new companies we have set out a reconciliation to show how this split is calculated using the respective PR14 RCVs as a starting point.

Bazalgette Tunnel Limited (Tideway)

The regulatory capital value for Tideway is calculated using a different mechanism to the rest of the industry. For Tideway the RCV is calculated using the actual spend from the preceding financial year (to 31 March) in accordance with its licence. The RCV for the majority of the industry is determined at a final determination for the following 5 years. The Tideway annual accounts are published no later than 15 July, after which the RCV must be published by Ofwat. Therefore there is a lag between when we can update the majority of the sector RCV (in April following the RPI publication for March) and the update for Tideway.