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Welsh Water and Northumbrian Water (NWL) are to receive draft determinations for the price review on 30 May, a month earlier than expected.
The two companies submitted early revised business plans to Ofwat on 2 May and were originally told to expect draft determinations “on or before 25 June”.
Ofwat says publishing the determinations earlier will give the regulator more time to “continue the constructive dialogue” with the remaining 14 companies ahead of their revised plans.
Welsh Water proposed further cuts to average bills for 2015-20 in its revised plan, bringing the total reduction to six per cent before inflation, while NWL would not comment on its proposals.
This followed the publication of draft determinations for enhanced companies South West Water and Affinity in April. Both had proposals to reduce bills further – by seven per cent and 11 per cent respectively – accepted by Ofwat.
The companies said they were able to reduce bills further by accepting a lower cost of capital following Ofwat’s announcement in January that its target weighted average cost of capital (Wacc) is 3.85 per cent for 2015-2020, down from 5.1 per cent in the current cycle.
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