Price Reviews
Customers have a very big role in influencing their water companies’ priorities for improving services in their area. This happens through price reviews which are held every five years.
Because competition for water and sewerage services is limited in England and Wales, companies need to have an economic regulator, Ofwat.
Ofwat sets the price, investment and service package that customers receive. This includes controlling prices companies can charge their customers. This process involves balancing consumers’ interests with the need to ensure companies can still successfully deliver water and sewerage services and protect the environment.
Ofwat review price limits every five years. The previous price review was in 2019 and applies to customer bills – and the services customers receive – between 2020 and 2025. Ofwat are currently working on the price review for 2024 (PR24). This will set wholesale price controls for water and sewerage companies for 2025 to 2030.
Before companies present their five-year business plans to Ofwat, they work with their customers to understand what services are most important to them and what needs to be prioritised.
The 2019 price review was the largest ever public consultation on water in England and Wales, with more than 1.5 million people were involved in drawing up plans for the period from 2020 to 2025.
Ofwat are currently developing the approach for reflecting customer preferences in future price reviews and will consult on the way they set price controls by publishing their draft methodology in summer 2022. Ofwat will make final price control decisions in December 2024.
Want to know more about the price review process?
Please click here to visit Ofwat.
Want to know more about the price review process?
Please click here to visit Ofwat.