Fast track draft determinations imminent as others resubmit PR19 plans
The 14 slow track and significant scrutiny companies resubmitted their PR19 business plans to Ofwat last Monday, having either presented better evidence to support their September plans or made changes in response to the regulator’s feedback.
Thames Water, the highest profile company and the most vocal after the 31 January initial assessment, reduced its totex pitch from £11.7bn to £10.9bn, with very limited de-scoping of outcomes. It found the savings through a combination of increased cost efficiency and uncertainty mechanisms. The company also increased the stretch in the key outcomes of supply interruptions, internal sewer flooding, pollution and leakage, and proposed a high gearing outperformance sharing mechanism.
This Thursday (11 April) fast track companies United Utilities, Severn Trent and South West Water will receive their draft determinations.
Details of the resubmissions will be available to THE WATER REPORT subscribers in the April edition.
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