Price Reviews
Every five years, OFWAT set limits on the prices which UK water companies can charge to their customers; this process is known as a Price Review. There have been four Price Reviews so far - in 1994 (PR94), 1999 (PR99), 2004 (PR04) and 2009 (PR09). The most recent, PR09, sets price limits for 2010-2015. They are set on a so-called "K factor" which determines the average value of price rises above the current rate of inflation (RPI) for the next five years. The rises so far set are:
| Start year | K factor |
|---|---|
| 1989 | +4.5% |
| 1994 | +1.4% |
| 1999 | -2.1% |
| 2004 | +4.2% |
| 2009 | +0.5% |
There were four phases of PR09:
- Preparation (March 2007 to March 2008)
- Setting the scene (April 2008 to January 2009)
- Decisions and determinations (February 2009 to November 2009) - the final determinations were published in November 2009
- Implementation and evaluation (December 2009 to September 2010) - by 26 January 2010, water companies decided whether to accept OFWAT's proposals or refer them to the Competition Commission. Only Bristol Water rejected Ofwat's price determination and referred the decision to the commission.
Read more about this topic: Ofwat
Famous quotes containing the words price and/or reviews:
“When rich villains have need of poor ones, poor ones may make what price they will.”
—William Shakespeare (1564–1616)
“When the reviews are bad I tell my staff that they can join me as I cry all the way to the bank.”
—Wladziu Valentino Liberace (1919–1987)