6th October 2015The Competition and Markets Authority (CMA) announced its final decision on the referral of the PR14 price control by Bristol Water. The summary of the CMA's results can be found here. The core areas of scrutiny were wholesale costs and financeability. The CMA confirmed that Bristol Water prices will fall, setting the wholesale totex allowance at £428.6 million and the WACC at 3.67% for the period of 2015-2020. This translates into average annual household bills of £160 compared to £187 as proposed by Bristol Water in their business plan. The CMA's determination is closer to Ofwat's December 2014 determination of £409m for wholesale totex and 3.60% WACC than to Bristol Water's business plan (£537 million in wholesale costs and 4.37% WACC).
CEPA supported Ofwat on wholesale costs throughout the CMA inquiry.