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Ofwat has asked water companies to submit updated cost allocations under new rules for PR14.
The regulator said that a consistent set of data was vital for setting wholesale and retail price controls because of the introduction of non-domestic retail competition scheduled for 2017.
However, Ofwat said a number of companies had not followed guidance set out in its methodology for the price review and it was therefore introducing new rules.
Ofwat also claimed more detailed cost allocations were important because it would allow the regulator to compare “apples with apples” when setting price controls.
The regulator acknowledged setting further rules contradicted its hands off approach to PR14 but said in this case they were necessary.
In a statement Ofwat said: “We recognise that detailed regulatory requirements are at odds with the general principle of giving companies ownership of their business plans for PR14, but given the particular industry issues, of market opening and controls based on comparative costs, set out above, we consider that further rules are needed in this instance.”
All companies will have to resubmit data by June 27.
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