Ofwat publishes Frontier report as part of its PR19 methodology consultation

Ofwat, the regulator of water companies in England and Wales, today published its methodology consultation for the next price control review (PR19). As part of this consultation, Ofwat published a Frontier report on how the framework for outcomes targets and incentives could be set at PR19.

Ofwat’s proposals on the PR19 outcomes framework draw on Frontier’s work in a number of ways, including:

  • using comparative and historical information to set stretching outcome targets;
  • combining multiple data sources to set customer valuations that are used in cost-benefit analysis; and
  • providing higher incentive rates for companies that deliver frontier-shifting performance and share their innovation with the wider industry.

Ofwat’s wider publication sets out its intended regulatory approach for PR19, and offers companies and interested stakeholders an opportunity to review these proposals and respond to Ofwat with any comments by the end of August.

Frontier advises on a range of topics affecting the water sector, including regulation and competition issues and customer engagement. Our clients include Ofwat, UK Water Industry Research, and a number of water companies providing wholesale and retail services.

For more information please contact Saskia Nett on s.nett@frontier-economics.com, or call +44 (0)20 7031 7000.

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