The water regulator has raised “substantial concerns” about the proposed costs of four utility companies in the latest problem for the industry.
Ofwat has written to Anglian Water, Thames Water, Yorkshire Water and SES Water to say there is a “significant gap” between its view of “efficient” retail and wholesale costs and these four companies’ proposals.
The regulator has been reviewing the business plans and proposed household charges for supply and sewerage companies in England and Wales for the five years from next April.
The privatised water industry is made up of ten regional monopolies, which are responsible for supplying households and clearing waste water. There are a further seven smaller local supply-only companies.
The prices the companies can charge to cover costs and investment…