03/10/08
In the next step in the process of setting water and sewerage charges for the period 2010 to 2015, the water regulator, Ofwat, has produced a summary of the Draft Business Plans published by water companies in August.
Ofwat sets out how companies plan to invest £27 billion to secure long-term sustainable water and sewerage services by maintaining assets, looking after the environment, protecting their assets against flooding.
Ofwat’s summary is part of the process of scrutinising companies’ draft plans in the run up to the Final Business Plans, due to be published in April 2009. Later this month, the Environment Agency will publish its summary of the Draft Business Plans, focusing on investment in the environment and water resources.
Joined up regulation is always important in the water sector, but will be even more important as we move towards the conclusion of the price review process.
Over the next few months companies will be discussing their plans with all their regulators and stakeholders, to ensure that they strike the appropriate balance for their customers between maintaining the high quality of water and sewerage services, making further improvements where these are good value for money, and ensuring that water bills are affordable.
Water companies will use this feedback in producing their Final Business Plans in April 2009.
As Ofwat explains, there could also be significant changes between the Draft and Final plans because of changes to the requirements for environmental investment. Water companies will also be keeping a close eye on the economic and financial situation – in particular on energy prices and financing costs – to ensure that their plans are resilient in these uncertain times.
Ofwat Summary of Draft Business Plans
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