Ofwat has confirmed that six companies have requested references to the Competition and Markets Authority (CMA).

The companies who have requested a review are:

• Anglian Water
• Northumbrian Water
• Thames Water
• Southern Water
• South East Water
• Wessex Water

The next step will be for Ofwat to formally make the references to the CMA, which will then have six months to make its own determinations. If required, this can be extended by up to a further six months.

The CMA will undertake a full redetermination of Ofwat’s decision for each company; it is not limited to assessing the specific issues raised by companies.

Chris Walters, Senior Director for the Price Review at Ofwat, said:

“As part of the standard process underpinning our Price Reviews, it is the right of companies to request a redetermination by the CMA. We will be re-stating our case as part of this process.

“Our PR24 final determinations unlock a quadrupling of investment by the sector. This will accelerate the delivery of work to deliver cleaner rivers and seas – as well as securing long-term drinking water supplies for customers.

“Final determinations were based on a robust examination of all funding requests made by companies to ensure every pound of customer bills provides value for money, delivers real improvements and enables the sector to attract the investment it needs.”

Following Ofwat’s review of company business plan submissions in the second half of 2024. the regulator said this had led to the removal of £8 billion of unjustified costs compared with companies most recent requests. In addition, Ofwat says its approach to setting a rate of return had saved customers £2.8 billion.

In total, the six companies serve more than half of all households in England – Ofwat’s final determinations in December cut the six companies planned investment by nearly £7 billion.

Commenting on the appeals, David Henderson, Water UK Chief Executive, said:

“Water companies need to invest billions to strengthen and expand infrastructure to support economic growth, secure our water supplies and end sewage entering our rivers and seas. Although many water companies can live with Ofwat’s decisions, an unprecedented six – serving the majority of customers in England - feel that they have no choice but to appeal to the Competition and Markets Authority. Companies hope it will overturn Ofwat’s decisions so they can get on with the job of helping deliver the Government’s overriding national priority – economic growth.”