CCWater 2014 Price Review (PR14) outcomes and objectives

The outcomes that CCWater is aiming to achieve from the price review are:

  • Companies’ prices, investment plans for 2015-20 and their longer term strategies reflect evidence of customers’ views of the outcomes they want to see.
  • Each company’s business plan produces high levels of customer acceptance and willingness to pay from robust customer research and engagement.
  • That the more customer focussed approach to price setting is seen to be a major improvement on what has happened before.

Objectives:

1. Most/all companies produce business plans that –

  • Show evidence of a high level of customer acceptance and willingness to pay
  • Require little or no adjustment by Ofwat

2. Prices proposed in companies’ business plans reflect the lower end of Ofwat’s cost assumptions (including cost of capital).

3. CCWater has strongly influenced the development of company business plans through customer advocacy in company Customer Challenge Groups/Forums.

4. Company engagement and research strategies are robust, show innovation, capture the views of all customer segments, and reflect recognised good practice.

5. Customers, regulators, Government, media and other parties see value in the revised price setting process, and recognise CCWater’s central role.

6. Ofwat’s Final Determinations deliver prices, service levels and investments that reflect evidence of customers’ required outcomes and willingness to pay.

Further info: Link to Forward Work Programme

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