United Utilities rejects Ofwat reforms
NORTH West water company United Utilities has rejected licence and price control changes proposed by the regulator Ofwat.
The Warrington-based group said it was “unable to accept” the proposals as they are, “not in the best interests of customers, investors and wider stakeholders”.
It followed similar statements from Yorkshire Water and Severn Trent on Friday, the final day of a consultation period on the proposals.
Ofwat believes the existing price-setting framework – of one five-year price control for all activities – is not flexible enough to allow water companies to respond to future challenges, such as population growth and pressure on water resources.
It also wants to allow all non-household customers in England to switch their water and sewerage supplier and to stimulate wholesale markets by extending opportunities to new entrants.
United Utilities said the its principal concern was the level of flexibility in the proposals, “would create unnecessary and prolonged uncertainty for investors, with the potential for this uncertainty to impact customer bills.”
It added: “United Utilities is committed to continued positive engagement with Ofwat to support the progressive evolution of regulation in the water industry.”
