Speaking at the Marketforce Water 2014 event on Tuesday, Ofwat chief executive Cathryn Ross said that PR14 was not a “one off correction” to market regulation and that its impact would continue into the next price review (PR19).
She said: “PR14 and the principles it exemplifies are at the heart of our new strategy – a strategy that will take us through the next periodic review and set the agenda for the one after that.
Ross said that regulatory regime being implemented under the forthcoming PR14 final determinations would build trust and confidence in the water sector.
The PR14 final determinations, which are due to be published on 12 December, “will challenge the companies to take responsibility for what they deliver”.
She added: “If they get it right, we will support any outperformance they earn. And they can expect additional flexibility within our regulatory framework and a less intrusive approach.
“Companies who don’t get it right will be subject to more intrusive assurance processes, and more burdensome regulation.”