Dŵr Cymru Welsh Water has written to Ofwat to confirm its acceptance of their Final Determination of the Price Review for 2025-2030.
The Final Determination will facilitate an increase by 58% in total expenditure (compared to 2020-25) to £6bn over the five year period, including £4.2bn capital investment.
The decision means that the company will not refer the matter to the Competition and Markets Authority (CMA).
Pete Perry, Welsh Water’s Chief Executive said:
“We have thoroughly reviewed Ofwat’s Final Determination, and the detailed commitments contained therein, and intend now to focus solely on gearing up to deliver on our obligations to customers and regulators over the next five years and beyond. We recognise that Ofwat has made significant change since the Draft Determination and believe that the Final Determination now more closely reflects the business plan we submitted.
“Whilst we believe the outcome of the process represents good value for customers over the next five years, the Final Determination still presents significant challenges for the business to deliver, but we are focused and committed to delivering for our customers. We are absolutely focused on achieving performance levels that move us out of our current ‘lagging’ status as assessed in Ofwat’s annual Water Company Performance Report.
“We appreciate the collaborative efforts that have taken place throughout this process, including the engagement with Ofwat and Welsh stakeholders such as Welsh Government and Natural Resources Wales, and the careful consideration given to our representations on the Draft Determination. Despite its challenges we believe the Final Determination reflects a balanced approach to addressing the overall risk and return package, affordability of bills, the requirements of the environmental regulators, and the sustainability of our operations, as part of a long-term plan to deliver the outcomes our customers and stakeholders expect.”
