Econometric base cost models for PR24

On 5th April 2023, we consulted on our proposed set of econometric models that we intend to use to help set efficient base expenditure allowances at PR24. It includes wholesale water, wastewater network plus, bioresources and residential retail models. This allows water companies to:

• account for early efficiency information in their PR24 business plans;
• focus more on long-term challenges; and
• submit high quality cost adjustment claims in June 2023.

The consultation webpage is here. We invite responses to this consultation by 12th May 2023 to [email protected]. Please use the consultation responses template saved here.

We will review responses ahead of our PR24 draft determinations, and consider making changes to our proposed cost models where appropriate.

We also invite water companies to submit base cost adjustment claims to [email protected] based on our proposed econometric models by close of play on 9th June 2023. Please use the cost adjustment claim template that is saved here.

Econometric base cost models for PR24: April 2023 consultation

Consultation response template

Cost adjustment claim template

Ofwat supporting analytical files

Independent CEPA modelling report

Water company base cost model suggestions