Three water companies appeal price control determinations to CMA

Bristol Water, Anglian Water and Yorkshire Water have chosen to have their price control determinations referred to the Competition and Markets Authority (CMA).

Of Ofwat’s decisions for the 2020-25 price controls, Anglian Water was noted as having the largest gap between its proposed investment of £6.5bn and Ofwat’s final determination of £5.7bn. The £747.8mn totex gap would see bills fall 10% compared to Anglian Water’s proposed 1% bill reduction. Moving forwards, the CMA will form an appeal panel as it looks to review the decisions, delivering its own verdicts after an expected period of six months – with the potential for extensions.

A&L Goodbody noted the appeal will likely be “closely watched” by other companies and sectors, citing Ofgem, who are also expected to set out tough price controls as part of the RIIO-2 process by the end of 2020, as an example.

A&L Goodbody