Paying for water and sewerage: charging options

Home > Our Experience > Case Studies > Paying for water and sewerage: charging options
Client UK Water Industry Research (UKWIR)
Dates 2013
Service(s)Policy & Economics, Regulation & Competition
Beginning with the 2014 price review, Ofwat will be splitting its price determination into  three components:
  • a wholesale price limit;
  • a retail price limit for the non-contestable part of retail; and
  • and default tariffs for the contestable part of retail.

CEPA helped UKWIR, the research group of the UK water industry, develop and evaluate options for companies’ approaches to charging in wholesale services and the non-contestable component of retail services. This project contributed to developing the industry knowledge base on charging issues. The options explored ranged across different tariff levels, tariff structures, and tariff categories. They also covered issues such as affordability, reflectivity, and harmonisation of charges.

Companies were able to use the findings in developing a draft charging strategy, and to help them respond to the consultation on Ofwat’s Methodology document.

As part of the project Steering Group, Ofwat was able to use the analysis to inform the development of rules and guidance for companies in the context of the new charging regime.

In addition to delivering the report and supporting documentation for the project, our team led several workshops to present findings and engage with stakeholders.