In December this year the water industry’s economic regulator OFWAT will announce its 2019 Price Review (PR19). The review sets the price, investment and service package that customers will receive for the five years between 2020 and 2025.
OFWAT has stated that PR19 will put a priority on:
- Customer service
- Affordable bills
The regulator is pushing water companies to improve efficiency and to provide more for less. OFWAT has said it wants to create a resilient, long-term future for the water market and ensure prices are at levels that customers can afford and are willing to pay. It has stated: “We plan to deliver PR19 in a way that is customer focused, long-term and incentivises companies to innovate and be ambitious. We will make greater use of markets where appropriate in PR19, together with proportionate and targeted regulation to ensure that companies deliver the things that matter most to their customers.”
While water companies wait to see the detail of PR19, the challenge is to assess their own operations, identify where improvements and efficiencies could be achieved and to establish the most effective ways of realising these gains. A large part of that will revolve around their risk assessment, mitigation and management strategies.
Download our white paper which explores where water companies might update and improve these strategies, and how this work could better align them with the stated priorities of PR19.
For further information please contact Ian Thompson, Head of Water Utilities on +44 (0)20 7558 3497.