The future regulatory framework was the main theme of debate among water companies, investors and stakeholders at the recent Water UK City Conference.
Views were given from attendees on Ofwat’s Water 2020 framework. These include plans to migrate from the RPI to index prices and regulatory returns by CPI and to create markets for water and sludge. Ofwat also intend to build on the approach from the last price review – water companies delivering outcomes their customers want and a total expenditure approach to improving incentives and provide flexibility for companies to be more efficient.
Rory Stewart MP, Parliamentary Under Secretary of State at DEFRA also spoke at the conference, saying the water industry should leave a legacy for future generations of investment to address long-term resilience challenges – a legacy which is better and more ambitious than the achievements of Bazalgette and the Victorian era. Rory also launched a roadmap setting out the Government’s plans for supporting long-term resilience in the water sector, which includes a steer that the Government will reinforce the high priority it places on securing long-term, efficient investment in resilient outcomes.