Ofwat has announced its decision to temporarily increase price caps in the business retail market by 0.49% - the decision does not affect household customers.

Ofwat is today proposing a small and temporary increase to the price caps in the business retail market - the temporary increase is intended to allow retailers to share some of the unexpected costs associated with bad debt that have arisen following the Covid-19 pandemic.

Ofwat has published its final decisions on how to address increases in bad debt in the business retail market related to COVID-19.

Following its March consultation on business customer bad debt in the business retail market, Ofwat has set out plans to help retailers begin the recovery of a portion of excess bad debt costs from business customers, starting from April 2022.

Ofwat is warning over increases in bad debt in the business water sector retail market as a result of COVID-19 - the regulator has launched a new consultation on proposals to address the issue.

Water sector regulator Ofwat has published its final decisions on how it will intervene to support customers’ interests in the business retail market through the current Covid-19 pandemic.

Ofwat has stepped in to ward off the risk of systemic failure and possible collapse of the still-developing retail water market as a result of the ongoing Covid-19 emergency.

Fitch Ratings is warning that the fallout from coronavirus, including delayed customer payments, increased bad debts and modified consumption volumes, will temporarily reduce cash flow, liquidity and covenant headroom of UK water companies in this financial year.

Ofwat is consulting a further package of measures aimed at protecting business retail customers and minimising disruption in the market as the coronavirus emergency continues.

Water companies are lagging behind other sectors where it comes to dealing with customers who are struggling to pay their bills, according to a new report from Ofwat.