Water sector regulator Ofwat says allowed return on capital was "generous to companies" in the 2014 Price Review for the AMP6 2015-2020 investment programme.

Ofwat says the introduction of the “totex and outcomes” framework in the 2014 price review (PR14) has been transformative and delivered a culture change across the water sector.

Water sector regulator Ofwat has launched an early engagement market sounding exercise to judge interest from potential suppliers  to select its Delivery Partner for the 2019 Price Review. 

Ofwat’s price cap regime does not balance risks appropriately between companies and consumers and is “not yet achieving the value for money that it should”, with customers failing to benefit from at least £800 million in net windfall gains between 2010 and 2015, according to a new report from the National Audit Office (NAO).

Bristol Water has published a statement aimed at clarifying the bill reduction for its customers following the impact of Competition & Markets Authority decision on the price review.

Ofwat has welcomed the outcome of the Competition and Markets Authority’s investigation into Bristol Water’s appeal against its price determination, saying  the CMA’s final decision “substantially supports and reaffirms Ofwat’s process for setting price limits during the 2014 price review.”

The Competition and Markets Authority (CMA) has delivered its decision on Bristol Water’s Price Review appeal – which fixes the water company’s wholesale expenditure at £428.6 million, Ofwat’s assessment of £409 million and Bristol Water’s estimate of £537 million.

The Competition and Markets Authority has published the latest submissions in its current Bristol Water PR14 inquiry – the responses to its own Provisional Findings (PFs) from Bristol Water, Ofwat, Thames Water, the Consumer Council for Water and South West Water.

Water industry regulator Ofwat is today launching an important debate around future water challenges with the publication of a keynote discussion paper, together with a number of separate papers on specific policy issues and a paper on lessons learnt from the 2014 price Review.

In its Annual Review for England and Wales 2014/15 published today, the Consumer Council for Water has described the 2014 Price Review as a “victory for the voice of the customer”, but warned that bills for Thames Water customers will be inflated by the cost of building the Thames Tideway Tunnel, with further increases in the pipeline.