Credit ratings agency Fitch has revised the UK water sector’s rating outlook to negative from stable, following Monday’s publication of guidance to risks and rewards for the 2014 price review by the regulator Ofwat.

Cathryn Ross, Chief Executive at Ofwat, has told MPs that the regulator is fit for purpose and doing its job – despite its own report published last week acknowledging that a skills gap, lack of financial control and accountability had led to Ofwat budgetary failures in 2013.

New guidance published by water industry regulator Ofwat today on key financial parameters that it will apply in setting price limits for AMP6 looks set to cut the rate of return below the levels proposed by the water companies in their draft business plans.

Water industry regulator Ofwat has set out its framework for resolving pricing disputes involving bulk supplies of water or sewerage services. In the run-up to the introduction of non-retail competition in 2017 the issue is of increasingly strategic importance to the wider water sector, not simply the parties concerned.

Water industry regulator Ofwat has launched a new consultation on wholesale and retail charges.

Water regulator Ofwat has published a “lessons learned report” on its internal budget planning and forecasting process which failed to anticipate the need to seek a significant increase in its 2013-14 budget and budget forecast for 2014-15.