Our review sets limits on what companies can charge customers for their water
Every five years, Ofwat carries out a price review. This review sets limits on what companies can charge customers for their water. That is particularly important as the sector remains dominated by monopolies.
This year we are gearing up for the next price review – which we will publish in 2019.
We will have four themes at the front of our minds
Over the coming months we will consult on, and then finalise, the methodology for the price review – that spells out how we will set limits on prices and the services we expect companies to deliver.
As we do that, and for the rest of the price review, we will have four themes at the front of our minds.
· Customer service
· Resilience
· Affordable bills
· Innovation
1. We want to see a real improvement in the service customers receive
Customers compare the water sector with the services they can get elsewhere. Not just one water company against another.
Water companies are far too comfortable providing the same customer services in the same way they always have.
That has to change.
2. We want to see resilience in the round
Resilience. It's not just about pipes and sewers. It means
· resilient supply
· resilient systems that recover quickly from problems like bursts and floods
· resilient companies with sound governance,
· resilience for our environment.
It also means tackling issues that could compromise resilience – like leakage, wasting water, and bad debt.
3. We want affordable bills
That means bills that offer value for money. And also bills that:
· are clear
· fair
· low as they can be
· ensure there is the right amount of investment for the future.
4. We want more innovation
The lack of innovation by water companies – in service, technology, new offers, working practice – is really striking.
Companies have been too passive and happy with the status quo, rather than testing themselves to improve and innovate. In the next price review, we will look at measures to change that.
Customers deserve better.
Carrying out a price review is a great responsibility
It is not a theoretical, economic exercise – it has an impact on every household and business in the country.
We take that responsibility very seriously – which is why we are starting our work early and doing it in an open and transparent way.
Watch our Chief Executive, Cathryn Ross Cathryn Ross, speak more about our priorities for the 2019 price review.
For more information visit www.ofwat.gov.uk/regulated-companies/price-review/
How you can get the latest information
You can get the latest information on our performance in our annual report and accounts.
Follow us on Twitter
Or LinkedIn
Or sign up to our email alerts
