Ofwat has announced they have received all water company business plans for the 2025-2030 period.
The five year price review is how the regulator determines what services customers can expect to receive and what level of investment should go in to the industry, based on plans submitted and approved by the UK’s water companies.
This latest review (PR24) comes at a time when the industry is under immense pressure to improve services, so a higher than normal level of investment is anticipated.
Ofwat will check and challenge plans to make sure they reflect what customers need and want. They’ll also check what is being promised, and whether those promises are both stretching and achievable. Most importantly they’ll consider whether the bills proposed by water companies are affordable and value for money.
The regulator has been clear it wants water companies to focus on key elements, including:
- Focussing on the long term
- Delivering greater environmental and social value
- To reflect a clearer understanding of customers and communities
- To drive improvements through efficiency and innovation
Ofwat will announce initial decisions on each company’s plans in the early summer of next year. Final decisions will be announced at the end of 2024, in time for the PR24 period which will commence on 1st April 2025.
