Economic sustainability
Development of the Regulatory framework
During the year, Ofwat, the economic regulator of the UK water industry, has been considering a number of options in changing the way it regulates the industry - and the regulatory burden that arises from the approach taken to regulation - as well as alternative approaches to performance incentives, potential market reform and the price-setting process.
The Company is supportive of reductions in the regulatory burden that still give regulator and customers adequate protection and has fully contributed towards the discussions and consultations that have taken place. In the discussions about potential changes to the form of price-setting and incentives, we see the support of innovative and sustainable solutions through any regulation as being an issue of prime importance.