All companies can ask us to reset their price limits between five-yearly price reviews. They can ask for this if specific changes lead to a significant reduction in their revenue or increase in their costs. This is known as an interim determination.
Thames Water has asked us to reset its price limits for 2014-15. We last set prices for water companies, including Thames, in 2009. Our decision then was that Thames could increase its charges by 1.4% above inflation in 2014-15.
Thames has indicated that its new application would add around a further 8% – around £29 – to the average household bill. The current average Thames household bill is around £354.
We decided that Thames had not submitted enough evidence to justify the proposed price increases and we turned down its application.
Thames can ask us to refer our decision to the Competition Commission.
- 16 October publish draft decision
- 16-23 October one-week consultation period
- 8 November publish final decision
- April 2014 new bills for 2014-15 come into effect, taking account of our decision on Thames Water’s application
- Final determination of Thames Water’s IDoK application
- PN 10/13: Ofwat turns down Thames Water’s application for extra price rise
- IB 23/13: Ofwat consults on draft decision on Thames Water’s application to increase bills
- Draft determination of Thames Water’s IDoK application
- IB 20/13: Ofwat confirms process for challenging Thames application for bill increases
- IN 13/09: Update on Ofwat’s process for Thames Water’s application to increase bills
- IB 16/13: Thames Water proposes significant increase in bills