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Latest CMA base cost modelling slashes allowances
(by Karma Loveday) The latest base costs modelling from the Competition and Markets Authority (CMA) would leave the companies challenging their price settlements – and the wider water sector if it was applied across the board – with lower allowances than Ofwat’s final determination (FD) and the CMA’s October provisional determination (PD). The CMA published a Base costs modelling working paper last week, which is open for consultation until 7 January. The outcome was: “Our u
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2 days ago2 min read
Retailers call on Ofwat to correct information that gives negative view of the market
(by Karma Loveday) Retailers have called on Ofwat to correct or withdraw a statement in the Business Customer Insight Survey 2025 that they see as “misleading and disingenuous”. The issue concerns the statement that: “In 2025, just 15% of all business customers were satisfied (net) with the water industry compared to 60% in 2020 and 64% in 2019.” In a letter to Ofwat responding to the second consultation on the Retail Exit Code, the UK Water Retailer Council (UKWRC), represen
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2 days ago1 min read
Multiple interventions could help businesses beat water use targets
(by Karma Loveday) By deploying a combination of interventions, non-household customers could be helped to save more water than specified in Environment Act targets. That’s according to a report from Baringa, commissioned by the Strategic Panel and Retailer Wholesaler Group’s (RWG) Water Efficiency Subgroup on how to incentivise business customers to cut demand. This is part of a suite of work from the RWG on a Water Efficiency Roadmap. Baringa identified eight actions and
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2 days ago1 min read
Utility Regulator confirms approach to NI Water’s next price control
(by Karma Loveday) Following its September consultation, Northern Ireland’s Utility Regulator has confirmed its approach to PC28 — Northern Ireland Water’s fifth price control since the government-owned company was set up in 2007. The review, for 2028-2033, will set all the usual price review elements, including outputs to be delivered and revenue allowed. In the absence of domestic water bills, NI Water is currently funded 70% by government subsidy, 20% by business charges,
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2 days ago1 min read
Homes blocked by nutrient pollution to be prioritised in Environmental Delivery Plans
(by Karma Loveday) Developments blocked by nutrient pollution in waterways will be the first focus of the new Environmental Delivery Plans (EDPs) being introduced alongside the Nature Restoration Fund. This was confirmed by the Government last week as the Planning and Infrastructure Bill gained Royal Assent. An Implementation Plan published as the Act became law set out the rollout route for the Nature Restoration Fund, which will culminate in the delivery of the first EDPs i
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2 days ago2 min read
Consumer Scotland urges water poverty action ahead of higher charges from 2027
(by Karma Loveday) Consumer Scotland has called for new measures to alleviate the potential rise in water poverty in Scotland over the next few years, as well as longer-term solutions. The statutory customer watchdog awaits Scottish Water’s final business plan for 2027-33, but noted that the draft bills would rise annually by up to 4% plus CPI inflation across the charging period. That would mean bills increase in real terms by as much as 26.5% across the six years and would
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2 days ago1 min read
Other stories from last week
(by Karma Loveday) Ofwat has confirmed that Wessex Water will fund an £11m enforcement package after the company failed to operate, maintain and upgrade its wastewater network adequately. The decision follows a November consultation. Thames Water has agreed a five-year Power Purchase Agreement with RWE to source renewable electricity from an onshore wind farm in Scotland. This will supply up to 15% of Thames Water’s power requirement and contribute to its use of 100% rene
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3 days ago2 min read
Thames Water: where are we now?
(by Verity Mitchell) As 2025 draws to a close, Thames Water is continuing to draw down its emergency loans, invest and make operational improvements. In the background, at not inconsiderable cost, its creditor group continues to negotiate with Ofwat on a revised longer-term financial arrangement to secure the utility’s refinancing. Thames Water has deferred awarding bosses retention payments totalling £2.5m to avoid public censure. The retention payment package for 21 senior
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3 days ago2 min read
Defra reports mixed progress on storm spill plan
(by Karma Loveday) A statutory report by Defra to Parliament on the progress of the Storm Overflow Discharge Reduction Plan (SODPR) shows mixed results in the first three years. Between August 2022 when the plan was published (it was extended in 2023) until August 2025, progress against the targets was as follows: The target for storm overflows discharging into or near ‘high priority sites’ (HPS) such as chalk streams not to cause local adverse ecological impact by 2045 – pe
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Dec 143 min read
Australian water sector sets out priorities for data centre water management
(by Karma Loveday) Governments should consider setting minimum water usage effectiveness (WUE) and power usage effectiveness (PUE) standards for new data centre facilities. That was one of five priorities set out in a major new report from the Water Services Association of Australia (WSAA) defining the importance of water to the success of the data centre sector in Australia. WSAA said its research is intended to inform water and data sector planners, policy-makers and stakeh
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Dec 142 min read
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