CMA PR24 water redeterminations
On 26 March 2026, the Competition and Markets Authority (CMA) published its final determinations for five water companies—Anglian, Northumbrian, South East, Southern, and Wessex—serving 7 million households with combined annual revenue of £5 billion.
The CMA confirmed £463 million in additional revenue for the AMP8 control period (2025–2030), representing 17% of what the disputing companies requested. The allowed rate of return for the appointed businesses increased from 4.03% to 4.20%. The increase in return for the wholesale businesses is from 3.97% to 4.20%.
These changes are expected to increase customer bills by 2.2% on average relative to the Ofwat final determinations, helping companies attract investment and meet legal obligations.
Oxera supported Anglian Water and South East Water throughout the redeterminations, providing analysis and advice on the methodology.
Our summary of the main changes in methodology for the cost of capital, base and enhancement cost allowances, and outcome delivery incentives is available to download below.
Download
Contact
Peter Hope, CFA
PartnerContributors
Related
Download
Related
Access to land for mobile telecoms networks: a framework for negotiation and regulation
Mobile towers serve as the backbone of mobile telecoms networks, hosting radio access network equipment that enables us to receive calls, texts and to access the internet on our mobile devices. In turn, the ability of the builders of mobile towers to access land—whether that is on the ground,… Read More
Podcasts
What is venture capital, how does it work, and what are the risks?
In the third and final episode demystifying private equity, we explore the world of venture capital. While venture capital has delivered exceptional returns for some investors and founders, it’s also very high risk. So, is vibrant venture capital essential for economies seeking to boost innovation and drive productive growth? In… Read More