Demonstrating how customers can influence business plans has emerged as one of the water watchdog’s clear priorities for PR24.
In a manifesto ahead of the price review, consumer group CCW said collaborative research, supporting local challenge groups, delivering higher quality consumer engagement and setting suitable incentives for fast-tracked company plans must all be considered by Ofwat.
At the previous price review, four companies had their plans referred to the Competition and Markets Authority (CMA) after rejecting Ofwat’s final determination. They cited a lack of consideration for customer support and engagement with their business plans as contributing factors to their requests for re-determination.
CCW said it wanted Ofwat to make clear how the views of consumers can influence decisions across PR24. The group said this transparency would add credibility in the eyes of customers and result in a price review that unambiguously responds to their needs and priorities.
Chief executive Emma Clancy said: “Despite progress made in recent years in terms of the way Ofwat and water companies listen to customers, decision-making power in the water sector is still heavily weighted in favour of the companies and regulators. That’s why, as the voice representing water consumers, we at CCW think it’s critical to give consumers a powerful voice at every stage of the price review process.”
The group previously advocated for collaborative consumer research, but stressed it should be in addition to regional research, not in lieu of companies carrying out their own work.
CCW said consumers should be considered in Ofwat’s decision to award fast-track status, which offers early certainty on plans. It suggested that companies should only be awarded the status if they have delivered on commitments in previous business plans.
Furthermore, CCW said fast-track status should reflect leadership from businesses that have “raised the bar for others to follow” on innovation and sharing of best practices.
Clancy added: “Even though the outcome of this process won’t take effect until 2025, work has already started to shape the future of water and sewerage services. At CCW, we’re looking forward to playing an active role in delivering outcomes that are customer-focused, treat customers fairly and give them confidence in their water and wastewater services.”