Ofwat seeks views on how to spread CMA changes to charges

Ofwat has asked for stakeholder views by 6 January on three options for the implementation of charges flowing from the PR19 redeterminations by the Competition and Markets Authority for Anglian Water, Bristol Water, Northumbrian Water and Yorkshire Water. These are expected in February.

It has set out three options:

• the default option of implementing the changes to charges over three years from 1 April 2022.

• implementing the changes over four years from 1 April 2021 – timing wise, this hinges on the CMA issuing its final findings by week commencing 8 February, which is currently uncertain; and

• implementing the changes over three and half years from 1 October 2021. Again this would require Charging Rules changes.

The second option was put forward by all the appellant companies except Yorkshire Water in a letter to Ofwat and it would require Ofwat to make changes to its Charging Rules for 2021-22)

Ofwat asked for views on the options as well as the companies’ ability to set charges under the second and third options, as well as the practical implications on third parties including business retailers.