30/10/09
The 2009 price review began with Ofwat's warmly welcomed innovation - requiring companies to produce 25-year Strategic Direction Statements ensuring a long-term focus for PR09.
The credit crunch and the economic downturn have shifted perspectives. Concern about affordability has rightly risen up the agenda. Companies have responded by reviewing their plans, taking their cue from customers' stated priorities.
But room for balancing long-term investment and short-term affordability has narrowed with the crisis. Financing conditions are no longer benign and revenues are being squeezed by deflationary conditions.
Ofwat needs to provide confidence to customers and investors that its final determinations will be robust to uncertain economic and financial conditions ahead. In this way a value for money, reliable and high quality service can be sustained.
Price reviews must build confidence
Contact: Water UK Communication
