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News & insights

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

Ofwat publishes further CEPA report on allocation of risk

Ofwat has published a further CEPA report in support of its early thinking on the design of the next water sector price review, PR24. We were commissioned by Ofwat to provide initial reflections on the allocation of risk within the regulatory framework for water services. Our views were used to challenge Ofwat’s thinking in the early design of PR24.

The CEPA report proposes an analytical framework for regulators to use in allocating risk. We provide a set of key themes and targeted questions to help put the framework into practice. We then applied this analytical framework to the water sector and identified ten potential issues for Ofwat to consider in relation to water services. Our work included recommendations for how Ofwat might develop the regulatory regime further for PR24 and beyond.

The main consultation ‘PR24 and beyond: Creating tomorrow’ was published on 27 May 2021, alongside CEPA’s earlier report assessing options for the regulation of developer services. Responses to the Ofwat consultation are due by 22 July.

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

Nick Hodges
Managing Consultant United Kingdom