Response to the CMA’s findings in relation to Ofwat’s PR19 final determination
17 March 2021
In February last year Anglian Water, the water and water recycling company covering the largest part of England and Wales, announced that it had asked Ofwat to refer its PR19 Final Determination to the Competition and Markets Authority (CMA). In September 2020 the CMA announced its provisional findings and, following further consultation, it has now published its final redetermination.
Commenting on the CMA’s findings, Peter Simpson, Anglian Water’s Chief Executive Officer, said:
“Our decision to ask Ofwat to refer its PR19 Final Determination to the CMA was rooted in our belief that accepting the determination would have significantly jeopardised our ability to fulfil our Purpose – to bring environmental and social prosperity to the communities we serve.
“Our plan proposed investments to increase our resilience to climate change and a population growing faster than almost anywhere else in the UK, and our customers wholeheartedly supported it. I am grateful for the huge amount of work undertaken by the CMA to work through these complex challenges as we exercised a recognised option that is built into the Price Review process.
“We welcome the CMA’s recognition that a different approach to funding growth is needed, and that looking after customers’ interests must include ensuring water and water recycling networks are resilient to increased demand as well as climate change. This will be important for future price reviews, alongside keeping bills affordable and supporting our vulnerable customers.
“There is much for us to be positive about in planning for a better future and working with Ofwat and our other regulators to achieve shared goals on resilience, water quality, pollution reduction, and support for vulnerable customers. Excellent progress is being made through Ofwat’s RAPID programme, clearing the way for significant strategic water infrastructure projects. Likewise, the acceleration in innovation and collaboration afforded by Ofwat’s Innovation Fund is one of the elements assisting the industry’s journey towards net zero carbon by the end of the decade.
“Our focus remains on supporting this future agenda, ensuring we continue to deliver the benefits for customers, communities and the environment that our Plan commits to. We’ll now work with Ofwat, Government, our quality regulators and our customers and communities to meet the challenges ahead.”