Wholesale controls


When we next set prices in 2014 we will set separate price controls for retail and wholesale services. We will set two wholesale controls, one for wholesale water services and one for wholesale wastewater services.

The wholesale control covers the technical services that the companies provide ‒ such as treating water so it is fit to drink, and transporting it through a network of pipes to a customer’s property.

Our wholesale incentives are intended to benefit:

  • customers, by giving companies a sharper focus on delivering what their customers want and giving customers more say over the price they pay and the services they receive
  • the environment, by encouraging companies to use water more efficiently and incentivising them to choose environmentally sustainable and lower-carbon solutions
  • regulated companies (both incumbents and entrants) and investors, by allowing companies greater scope to innovate and for well-performing companies to outperform the controls we set

Further information

Working spreadsheet model for calculating the CIS true-up adjustments
The purpose of this model is to perform the CIS true up calculations to derive the revenue adjustment and the RCV adjustment that will be taken into the financial modelling of setting price limits at the next period’s price control.
6/Nov/2012 (UNKNOWN – 161 KBytes)

Cost assessment
A report prepared for Ofwat by CEPA
23/Jan/2013 (PDF – 769 KBytes)

Ofwat publishes report on cost assessment
22/Jan/2013 (HTML – 2 KBytes)

28/Nov/2012 (HTML – 1 KBytes)

Indepen publishes report on modelling incentives
30/Nov/2012 (HTML – 2 KBytes)

Wholesale workshop – 19 September 2012
24/Sep/2012 (HTML – 882 Bytes)

Payment terms between wholesalers and retailers – a consultation
The purpose of this document is to consult on Ofwat’s preferred approach to setting payment terms between wholesalers and retailers in the water and wastewater markets in England and Wales. Following this consultation, we will publish statement on the form of payment terms.
11/Oct/2013 (PDF – 293 KBytes)

Wholesale and retail charges – a consultation
This consultation describes some of the different options available for setting charging rules, and potential approaches to governance given our new price control framework and the Government’s reforms. We intend to set out our conclusions from this consultation in spring 2014, with a draft set of charging rules for consultation.
17/Jan/2014 (PDF – 820 KBytes)

Charging working group
5/Feb/2014 (HTML – 2 KBytes)