Periodic Review Process
The water industry is a highly regulated industry. Price limits, defining
the maximum bill to customers for the supply of water, are controlled
by the Water Services Regulation Authority, known still as Ofwat
The periodic review is the process adopted by Ofwat to review the future
price limits and ensure that the water companies have sufficient finance
to carry out their obligations. It involves every five years carrying
out a detailed review of the water companies obligations, investment
plans and finance requirements and following extensive consultation
setting price limits for the next five years. The Asset Management Plan
5, AMP5, covers the period April 2010 to April 2015.
The Draft Determination by Ofwat (published July 2009) shows that significant capital investment of £21 billion will continue in AMP5. Since privatisation 20 years ago the water companies will have invested over £80 billion to maintain and improve services.
The Final Determination is published by Ofwat in November 2009.
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