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Ofwat price proposals are false economy

30/09/09

Short-term decisions on prices could affect investment and service quality. Water UK responds to PR09 draft determinations.

In proposals for 2010-15, Ofwat has dropped the 25-year Strategic Direction Statements it required companies to produce as a framework for PR09 and substituted a short-term approach to prices.

The industry is concerned that proposals to squeeze final business plans and reduce bills will prove a false economy and result in delays to urgently needed planned improvements, and a loss of investor confidence.

The draft determinations put financial stability at risk by setting aside the long term in favour of a short-term approach to prices.

Water UK response to Ofwat's 'Future water and sewerage charges 2010-15, Draft determinations' (18 pages)

Water UK press release

Contact: Water UK Communication


© Water UK

Sat 11 Feb 2012, 2:44
http://www.water.org.uk/home/news/archive/price-review-2009/-30-09-2009