We’re pleased to have supported water companies in their first cost change applications at AMP8, which unlocks critical investment worth £3.4bn to deliver resilient water and wastewater services for current and future customers.
• We worked with Water UK and its members to consider ‘A Practical Approach to What Base Buys’. In its Draft Determinations, Ofwat highlighted that its approach “reflects the findings of the Economic Insight review by recognising that no single methodology is appropriate in all circumstances. Instead, we have adopted a proportionate and evidence-led framework that combines sector-wide benchmarking with company-specific considerations where justified, taking account of the characteristics of different asset classes and the need to protect customers from the risk of double funding.“
• Eleanor Clutterbuck worked closely with Thames Water over the last 6 months to support the development of its Major Projects Cost Change Submission. Thames Water has provisionally been provided 99% of its total requested allowance, one of the highest across the industry.
• We also worked with Severn Trent Water in developing the evidence to support its asset health applications, including a tailored approach to estimating ‘what base buys’, which Ofwat has accepted in full.
