The regulator had previously proposed to bring forward business plans by around four months. However, respondents to its December consultation raised concerns about the potential misalignment of the water resource management planning process and the National Environment Plan with this longer timeline.
In a joint letter to companies, Ofwat, Defra and the Environment Agency said: “We have listened to the concerns raised about alignment and recognise the benefits that greater alignment between the two planning processes will bring.”
The letter said water companies must publish their water resource management plans for consultation promptly during January 2018, to ensure there is sufficient time available to produce a statement of response by July 2018 within the statutory 26-week consultation and response period.
“The 1 December 2017 deadline for the submission of draft plans is a backstop date to enable regulators to support this, and Defra and the Environment Agency will welcome earlier submission,” it said.
It added that, as it is likely business plans will be submitted before the Secretary of State makes decisions on water resource management plans, companies will need to ensure that their business plans reflect their water resource management plans when they are submitted on the 3 September 2018.
— Ofwat (@Ofwat) May 5, 2016
The detail of the price review design remains under development through Ofwat’s Water 2020 programme, and the final guidelines for water resource management plans for English companies will be published shortly.