In 2014, the UK Government put in place legislation to enable eligible customers to switch water and wastewater retailer. From April 2017, eligible business customers will be able to choose their retailer and select the package of prices and retail services that best suits their needs.
Our PR14 price review final determinations set business retail price controls for a two-year period, allowing for a review of these arrangements prior to market opening. These controls set the total allowed revenue that a retailer can earn for a given customer type, based on an allowed average cost per customer and a net margin as well as forecasts of wholesale revenue and customer numbers in each year. Companies set charges that comply with the annual allowed revenue controls for each customer type which are called default tariffs.
In May 2016, following consultation with stakeholders, we issued our statement of method that set out our approach to this price review (PR16), including how we would assess company proposals for the business retail price controls for the period between 1 April 2017 and 31 March 2019.
In September 2016, following consideration of company proposals, we published our PR16 draft determinations. Stakeholders were asked to respond to these by 28 October 2016.
We have now published our Business retail price review 2016: Final Determinations and accompanying documents below.
Please note that if a company has submitted a revised PR16 proposal, we have not published their initial proposal.