Water & Wastewater Treatment

www.wwtonline.co.uk | WWT | MARCH 2020 | 5 COMMENT History in the making In what can only be described as an historic moment for the water sector, four companies have appealed to the CMA over their final determinations (see round up). The ramifications of this will continue to be felt for a long time, but according to industry sources Ofwat remain unmoved by the stance of the gang of four. Publicly, Rachel Fletcher - the chief executive of Ofwat – made the following statement: "This price review lays down a major challenge for the sector to transform. Companies must become more efficient, and step up to deliver better services, lower bills and secure long-term resilience. We have been clear that shareholders' rewards will only be earned through a new standard of operational excellence. Some investors have accepted this scale of ambition and change, but others need to face up to the new reality. "We are ready to fully engage with the CMA, setting out our analysis and why we are confident this is the right settlement for customers, the environment, and companies." Yorkshire Water reached for the trigger first, days ahead of the final cut-off date for CMA referrals – and were followed by Bristol Water, Anglian Water and Northumbrian Water. Even amongst those who accepted their final determinations there have been grievances with the regulator. So what happens now? Following appeals from the companies, the CMA will consider Ofwat's proposed 2020-25 price control. An Inquiry Group of independent panel members will be appointed to review Ofwat's price determination decision, supported by a team of staff within the CMA. The CMA expects Ofwat to give it six months from the date of the reference to complete its review, although this can be extended if the CMA needs more time. Ofwat will refer the price control for each water company that appeals. At the end of the review, the CMA will publish a report with its final decision on Ofwat's price controls, including any changes that it deems necessary. Until then it's business as usual. Appeals can be expensive and time consuming, but ultimately the companies involved in this process will need to continue to deliver operational excellence and great service for their customers, up to and a er decision time. Alec Peachey, content director, WWT CUSTOMER EXPERIENCE DRINKING WATER QUALITY LEAKS AND BURSTS SEWER NETWORKS WASTEWATER QUALITY WATER RESOURCES 'WWT is focusing on six core content themes. Look out for the illustrative tabs that highlight specific areas of the industry.' the heart of everything we stand for and have stood for, for generations. Although there is a lot we agree with Ofwat on, there are some technical issues, mainly around how to finance our company, that we don't agree with." The final determination included 14.8% reduction in bills, compared to the 5.4% reduction proposed by the company, and the totex allowance from Ofwat was £31.8 million lower than requested by the company a€er the dra€ determination. Elsewhere in the final determination the total allowed revenue was £553.3 mil- lion, compared to £603.5 million request- ed by Bristol. For more on the final determinations visit www.wwtonline.co.uk Companies who have accepted their final determinations: l Severn Trent l United Utilities l Welsh Water l Wessex Water l Southern Water l Portsmouth Water l South West Water l Affinity Water l Thames Water l South East Water l South Staffs Water l SES Water discuss next steps on the innovation competition and other potential activities such as the water companies' joint in- novation strategy. Key takeaways will include: l Hearing what Ofwat's ambitions and expectations are for innovation in the sector l Finding out how your organisation can play a leading role and work collabo- ratively with others to drive innovation forward l Gaining a perspective from another sector l Understanding next steps on the in- novation competition To register for the event visit https://wwtonline.co.uk/webinars/ cracking-innovation-together

• Cover
• Contents
• The Talk
• In Focus
• The Knowledge