Ofwat has today published draft determinations for Northumbrian Water and Dŵr Cymru as part of the 2014 price review.

The draft determinations set out the proposed prices the companies can charge their customers for water and sewerage services from 2015-2020.

Under the current plans submitted, Dŵr Cymru will decrease customer bills by 5% in real terms over the next price control period 2015-2020 while investing more than £2.5 billion. Northumbrian Water will reduce customer bills by 2% over the five-year price control, with investment of £2.7 billion. This investment will maintain and improve services for customers and the environment.

Ofwat’s Chief Executive, Cathryn Ross, said:

“We recognise that public trust and confidence is essential if water and sewerage companies are going to remain legitimate in the eyes of their customers. These draft determinations will help maintain and build that trust and confidence. Under this price review we have seen companies rising to the challenge and developing innovative and efficient solutions for their customers both now and in the future, and for the environment.”

Ofwat’s Chief Regulation Officer, Sonia Brown, said that Ofwat had challenged both companies' business plans and identified a small number of areas where it had been necessary to intervene to protect customers’ interests - both firms were now offering their customers improved outcomes at a more affordable price. 

Consultation on the draft determinations will close on 4 July – Ofwat is inviting comment from all stakeholders. South West Water and Affinity Water as “enhanced companies” received their draft determinations on 30 April. All other companies will receive their draft determinations in August 2014.  Final determinations for all companies will be published in December 2014.