31/10/10
The remit of regulators, complexity of price regulation, and consumer participation will be at the heart of the water industry's response to the government review of Ofwat and the Consumer Council for Water.
The review, led by David Gray, is a timely opportunity to assess the contribution of the regulatory regime to the industry’s success. It must also lead to arrangements that will support the industry in meeting future challenges, to the benefit of consumers and the environment.
Given the industry’s strong record it will come as no surprise that Water UK supports the principle of independent economic regulation. But scope also exists to:
• improve the shape and functioning of the regulatory ecology
• increase understanding of the remit of different regulatory agencies
• simplify the monitoring and price-setting regime; and
• ensure that consumers can hold companies and regulators to account for protecting price and non-price interests.
The economic regulator has the scope to challenge the industry to be efficient and innovative. It also has a responsibility to promote the industry externally as attractive for further investment, so that companies can deliver the levels of service present and future consumers will require.
Defra Review of Ofwat and CCWater
Contact: James Bullock
