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The Competition and Markets Authority (CMA) will extend its six month investigation into Ofwat's price controls for Bristol Water, according to the water industry regulator.
The CMA’s investigation into Bristol Water’s Ofwat-mandated controls was due to conclude on 3 September, but the regulator said on Wednesday that it has agreed to a two month extension.
Ofwat said that having received and considered representations from the CMA, it is “satisfied” that there are “special reasons” why the report cannot be made within the period specified.
The decision to extend the probe comes just one month after the CMA published its provisional determinations which suggested the company should only be allowed to claw back a very modest £20 million from its PR14 price controls.
Under the initial CMA proposals the water company would see its allowed wholesale cost expenditure increase from the £409 million set by Ofwat in its final determination, to £429 million, which remains substantially lower than the £537 million the water company set out in its final business plan.
Bristol Water was the only company to reject its final determination from Ofwat when it did so in February this year, criticising the “flawed modelling” used by the regulator.
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