Four fall short in PR16 draft determinations

Ofwat has turned down the non-household retail price proposals submitted by Anglian Water, Welsh Water, Northumbrian Water and Thames Water and has instead published draft determinations for those companies based on PR14 price caps. The regulator said these firms had “made proposals that were not supported by evidence that was sufficiently convincing, comprehensive and/or robust”.

The news came this week as Ofwat published PR16 non household retail draft price determinations for the industry. The other companies fared as follows:

  • Severn Trent, United Utilities and Wessex Water proposed significant changes to their PR14 price caps. Ofwat said it intended to accept these, given they were supported by “strong and comprehensive evidence that was proportionate to the bill impacts of the proposals”.

  • Affinity, South East, South Staffs, Southern and Sutton and East Surrey proposed minor changes, which were backed by reasonable quality and proportionate evidence – Ofwat is minded to accept.

  • Bristol, Dee Valley, Portsmouth and South West Water proposed no or very limited changes to their PR14 caps so Ofwat is intended to accept these as the basis for the new default tariff caps.

  • Yorkshire Water has been asked for further information to support the minor changes it proposed.

  • The significant changes proposed by South West Water to PR14 caps in the Bournemouth area have been modified and the modified caps used as a basis for draft determinations.

The regulator invited representations by 28 October and said final determinations would be issued on 15 December.