Ofwat has today published draft determinations for South West Water and Affinity Water as part of the 2014 price review. The draft determinations set out the proposed prices the companies can charge their customers for water and sewage services in 2015-2020 and show a reduction in customer bills before inflation.
On 4 April 2014, South West Water and Affinity Water were awarded enhanced status after the completion of the risk-based review which assessed the quality of business plans companies submitted for the 2014 price review. These companies therefore receive draft determinations earlier than other companies.
South West and Affinity both propose lower customer bills in real terms over the next price control period 2015-2020 while maintaining investment in customer services and the environment. South West’s customers’ bills will fall an average of 7% before inflation, while the company will spend approximately £1.7bn on maintaining and improving service to customers. Affinity’s customers’ bills will fall an average of 11% before inflation, with investment of approximately £1.2bn over the period.
Ofwat’s Chief Executive, Cathryn Ross, said:
“It is our duty to protect customers’ interests and ensure that companies focus on delivering the best service to their customers at a fair price. This is essential if the sector is to retain public confidence and trust. I’m pleased to see that both South West Water and Affinity Water have proposed lower bills for their customers while maintaining essential investment for the future.”
Ofwat’s Chief Regulation Officer, Sonia Brown, said:
“We wanted to see companies really stretch themselves, and South West and Affinity rose to that challenge with innovative and affordable business plans. This is a good deal for customers, reflecting the engagement companies had with their customers and the work of Customer Challenge Groups which played an important role in delivering these high-quality plans.”
Consultation on the draft determinations will close on 4 June, and representations from all stakeholders are welcome. Other companies will receive their draft determinations in either June or August. Ofwat is currently considering requests from companies to receive June draft determinations which will be published on 25 June.
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