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UK Utilities in Safe Waters with Policy Shifts

29 August 2014
Research Note

On 18 August 2014, UK’s Water Services Regulation Authority (Ofwat) communicated its plan to switch from ‘retail minus’ to ‘wholesale bottom-up’ as the basis to set water utilities’ access pricing. This forms part of the UK Water Act 2014 that will unbundle the country’s utility licenses and introduce competition into the non-residential segment by 2017. The government estimates that this will create an open market of roughly 1.1 million customers.

The planned implementation of the Water Act coincides with the UK’s five-year price review currently underway (PR14). On 11 July 2014, Ofwat published all licensed water utilities’ revised business plans including capital improvements and financials to justify rate changes for 2015.

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