As part of the regulatory framework for PR14, Ofwat removed the automatic link between prices and inflation for the retail price controls. In their Business Plans for PR14, water companies were required to provide evidence relating to cost adjustment claims regarding retail inflation.
Several companies commissioned Economic Insight to take forward a range of analysis and benchmarking to support their claims in their final Business Plans. In the third of our latest batch of Insights: Retail HH input price pressure and benchmarking analysis we set out our analytical framework used in the assessment of each company’s case for allowing input price pressure within their Retail Business Plans.
