In response to Ofwat’s determination, Jonson Cox, Chief Executive said:
“This is a harsh determination from Ofwat and no-one should be under any illusion that we will now have to make significant cost cuts and efficiency improvements to meet the tough financial targets we have been given. And we are already recognised in this review as one of the most efficient water companies in the UK.
“The business plan we put forward struck the right balance between keeping bills down, being able to invest in essential infrastructure and in securing water supplies against the impacts of climate change. This is what our customers told us they wanted. We also had the backing of leading organisations in the region such as the CBI and regional development agency.
“In Ofwat’s determination, announced today, we welcome the fact that they have listened, and responded in some measure to what we have had to say since they published their draft determination in July. But we remain concerned that Ofwat has rejected a number of important proposals we put forward, in particular the cut of over £80million we had earmarked for securing water supplies and sewerage services in vulnerable areas and further prevention of internal sewer flooding.
“Ofwat also reduces by over £125m our plan to invest in infrastructure for this fastest growing region of the UK, which we believe will risk undermining housing growth, economic competitiveness, and job opportunities.
“Before commenting further, we are going to study the detail contained in Ofwat’s 136 page document. We have until 25 January to decide whether to accept this settlement or to appeal to the Competition Commission.”