30/06/11
Another milestone towards the next price review, for 2014, has been passed, as Water UK and others submit responses to Ofwat's informal consultation on their preliminary model.
Ofwat has said that this feedback will shape the options included in its next publication, in October, when the debate around the preliminary model gives way to something closer to the final approach.
The stakes for successful execution of that next consultation are high for all stakeholders.
Ofwat has committed to consult on all aspects of its framework, going beyond the constraints of its preliminary model. This is essential to build confidence in the regulatory approach.
But the regulator will also need to move on from free-thinking discussion towards firmer proposals. Immovable deadlines associated with a price review will need to be met, and companies will soon need to focus on practicalities such as developing proposals and planning for comprehensive stakeholder engagement.
Clarity about what changes will impact the next price review - and which developments need to be considered separately - will be important for ensuring the price review is achievable, robust and proportionate.
