News & insights

Access the latest CEPA developments, our case studies and publications

Sectors

Read about our portfolio of sectors and the type of work we conduct in each

About

Find out more about what we do in economic consulting and our company history

Careers

Learn more about working at CEPA, our latest vacancies and how you can contribute to our work

News & insights

Date: June 2021 | Client: Ofwat | Sector: Water | Expertise: Regulation & competition

Ofwat outlines its initial views about the Price Review frameworks for 2024 (PR24) and beyond

CEPA contributed to Ofwat's consultation by developing and assessing options for the regulation of developer services at PR24 and beyond. The aim of our study was to assess whether customers could be better served by developer services remaining in the wholesale price controls, or by reducing the regulation of developer services and relying more on market processes.

Our work suggests that Ofwat should focus on two high-level strategic options for PR24, reflecting different points on a spectrum of relying more or less on ‘ex ante’ regulation of developer services (i.e. price control regulation) versus ‘ex-post’ monitoring and enforcement:

  • An evolution of the current regulatory approach, where all developer services continue to be regulated within the scope of the wholesale price control, potentially with a view to a further transition towards more separate regulation or deregulation of developer services in the future.
  • A more fundamental change in approach that would be more reliant on ‘backstop’ regulation of contestable developer services, akin to Ofgem’s approach to regulating new connections in electricity.

To find out more, please contact our experts listed below.

Tom Cochrane
Principal United Kingdom
Emmanuella Gentzoglanis
Managing Consultant United Kingdom
Leandro Arias
Associate Argentina