Ofwat publishes approach to setting prices

Ofwat has today published its approach for determining the prices water and sewerage companies will be able to charge customers for the five year period beginning in 2009 (PR09).  The publication follows a consultation period, during which the water and sewerage companies were able to provide their views on a range of matters associated with the forthcoming price review.  The next key milestone in the price review process will be the submission of draft business plans by the companies in June, which will set out the price increases the companies believe will be necessary.  Frontier (London) provides a range of economic advice to water industry stakeholders including companies and regulators.