“Since privatisation, Ofwat and Defra have overseen major improvements in water quality and service quality. Ofwat’s 2014 price review committed companies to improving services further over the next five years while cutting customer bills, increasing value for money for consumers. Customers, however, have not seen enough of the benefits of companies’ unexpected financial gains from factors such as falls in corporation tax rates. Ofwat made significant improvements in 2014, but its price cap regime is not yet achieving the value for money that it should.”
Water UK response to National Audit Office Report
Water UK ‘The water industry has worked closely with the NAO over many months and provided a range of figures and information to assist their review of regulation in the sector. Such reviews are important to ensure that customers, Government, the regulator and the water industry itself get the best out of our vital water and wastewater suppliers and their services. The NAO has been looking at the fifth regulatory periodic review, conducted by Ofwat in 2009, for the period 2010 to 2015 which saw some turbulent economic conditions and volatile financial markets. We have since moved on significantly with the sixth periodic review having been conducted in 2014, when Ofwat took the results of previous predictions into account in making their determinations for the 2015-2020 period.’ To read more go to:
‘Ofwat today welcomed a major new report supporting its approach to regulation which is delivering improved services, substantial new investment and “increasing value for money for consumers”.
Cathryn Ross, Ofwat Chief Executive said: “I welcome the NAO’s clear recognition of the benefits already achieved, and the value of the new approach adopted for Ofwat’s 2014 Price Review. It highlights that Ofwat has been constantly refining its approach to respond to a fast moving world of uncertainty, and its new regulatory framework will make the sector more resilient and accountable in future.’