Bristol Water has said it remains confident that its AMP6 Business Plan has the support of customers, following water industry regulator Ofwat’s identification of what it described as a £203m “gap” in the Plan.
The concerns are focused on the future planned expenditures on Bristol Water’s wholesale water price control.
In a written statement, Bristol Water said it had noted the information provided by Ofwat in respect of its Business Plan proposals for 2015-2020, commenting:
“We remain confident that our plan has the support of our customers, following extensive consultation and research over the last three years, and would provide the necessary investment to maintain a high quality water service whilst keeping price rises below the rate of inflation.”
The water company said it appreciated the feedback from Ofwat and would be seeking clarity on the wholesale cost assessment which the regulator had carried out, in order to consider what additional information it could provide to the regulator and what changes it needed to make to the business Plan, adding:
“We look forward to working with Ofwat to reach a final determination which is in the best interests of our customers and all our other key stakeholders.”
Last week the regulator called into question cost claims submitted by United Utilities, Thames Water and Bristol Water for their AMP6 Business Plans running into hundreds of millions of pounds.
The current ‘gaps’ identified for each company are as follows:
- Bristol Water – Water: £203m (57%)
- Thames Water – Thames Tideway Tunnel Costs: £331m (102%)
- United Utilities – Wastewater: £760m (29%)
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