25/07/11
The Defra review of Ofwat concluded that the sector could deliver better by reducing the regulatory burden and embracing cultural change.
Ofwat needs to step back and give water companies more room for manoeuvre, and companies will need to learn to make use of this new freedom.
Overall, we find this a compelling diagnosis, albeit one which presents significant challenges for execution. It will be difficult to measure Ofwat’s progress in driving change - but we will know it is happening when we see it.
The review team's assessment of Ofwat’s recent Future Price Limits informal consultation suggests that there is still a significant distance to travel. We agree.
Ofwat's firmer proposal in October presents a further opportunity to robustly demonstrate how the next price review can reduce the regulatory burden and give companies greater freedom to focus on customer priorities.
As the clock counts down towards immovable deadlines for action, it is important that Ofwat grasps this opportunity so that stakeholders begin to feel tangible benefits from Ofwat's efforts to change.
Strong support for CCWater - see below
Defra review of Ofwat
Ofwat informal consultation on preliminary model for future price limits
Water UK response to Ofwat informal consultation on preliminary model for future price limits
