Ofwat

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The Department for Environment, Food and Rural Affairs (DEFRA) has finally revealed details of its plans to strengthen Ofwat’s powers to amend licence conditions - based on the model currently used by Ofgem. In response, water companies have warned that the potential instability caused by the changes - set out in an update on progress towards the introduction of the Environment Bill - could deter investors.
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Earlier this month Ofwat wrote to Anglian Water, SES Water, Thames Water, and Yorkshire Water to air substantial concerns about their proposed costs for 2020-25. With the draft determinations now published, Utility Week examines the areas in which Ofwat intends to intervene with each of the four companies.
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David Black, senior director of Water 2020 at Ofwat, told Utility Week that some water companies have been reluctant to change their stance on costs during the PR19 process. He also discussed which companies had shown real ambition to tackle key performance issues and which had stood still.
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Northumbrian Water Group (NWG) chief executive Heidi Mottram has said it is crucial that any initiatives aimed at stimulating innovation in the water sector do not penalise failure. She said NWG's third Innovation Festival showed what could be achieved through collaborative innovation but said risk would always be an important part of creativity
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