Ofwat’s draft determinations for the non-fast-tracked companies, published a week ago, cover a wide range of issues (across several documents). Now that the dust is settling, it’s time to take stock. What are the key messages on efficiency and finance?
The non-fast-track draft determinations are certainly more challenging on finance compared to Ofwat’s early view. Moreover, on the question of what constitutes an efficient cost level, the views of Ofwat and the companies continue to diverge, especially in relation to enhancement expenditure. To find out what is driving these outcomes, download Oxera’s latest assessment.