26/11/09
The water regulator for England and Wales today published final decisions on water company prices and investment for 2010 to 2015.
Following consultation with companies and stakeholders, Ofwat has made amendments to its unrealistic draft price proposals.
In explaining its decisions, the regulator points to a need to balance customers' wishes with ensuring the stability of the industry and a fair return for investors.
Water UK shares this goal and notes that Ofwat has moved to revise the proposals. Yet improvements to its own first position still leave the settlement short of the industry's hopes on behalf of customers and investors.
Companies now need time to absorb the detail. They will want to see if the settlement will safeguard a strong record in raising the quality of drinking water and environmental standards.
Pamela Taylor, Chief Executive, said:
"The companies' business plans were based on 25-year direction statements and the biggest-ever consultation with customers. They took full account of both consumer priorities and the need to go on strengthening the infrastructure in the face of climate and demographic change.
"Ofwat has made changes to the draft determinations but doubts remain about the balance they have achieved. Companies must ask themselves if the settlement will allow them to meet the needs of their particular customers and local environments.
"In the end it is the companies that take responsibility for the delivery of two of society’s essential services, not the regulator."
For more information please contact:
Water UK Communication
020 7344 1809 (out of hours 07833 450544)
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