Ofwat adjusts price controls

The water regulator has adjusted price controls for the 17 English and Welsh water companies to reconcile forecasted performance data with actual for 2019-20.

The final year of AMP6, known as the blind year, saw some companies performing better or worse than predicted in the final determinations published in December by Ofwat.

The forecast figures have been updated by the regulator with the most significant changes to revenue for Thames (£33.6), Southern (£23.4 million), Yorkshire (£17.7 million) and Anglian (-£28.7 million).

Most of the interventions related to performance commitments and the outcome delivery incentives (ODIs) associated with them.

Companies that performed better than expected receive revenue payments and those that did not meet the expectation will have to return the money to customers.

For the four companies currently awaiting a final decision from the Competition and Markets Authority after appealing Ofwat’s final determinations, the regulator will share its decision on blind year adjustments with the CMA.

Although the changes for Anglian, Bristol, Northumbrian and Yorkshire relate to the previous price control period (PR14), it will give them different allowed revenue for this period (PR19).