Sutton and East Surrey Water has accepted Ofwat’s Final Determination on the company’s AMP6 Business Plan for 2015 – 2020. (Editorial correction: This story has now been updated)
The regulator’s decision envisages that Sutton and East Surrey Water’s average domestic water bill will reduce by 3% from the current £186 a year to £180 a year (before inflation) by 2019/20.
As part of the review process, the company had the opportunity to consider whether to accept Ofwat’s decision, or ask for it to be referred to the Competition and Markets Authority to make an independent, final decision on what the levels of customers’ bills should be from 2015 – 2020.
As part of accepting Ofwat’s decision, the company has had to decide on its total expenditure target for the period 2015 to 2020. Sutton and East Surrey Water has decided to adopt the target (or “menu choice”) already included within Ofwat’s final determination.
This means that minor changes are needed to some of the penalties and rewards attached to the Outcome Delivery Incentives (ODIs) included in the final determination notice.
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