Regulatory policy and consultations

As regular and active contributors to Ofwat's plans for the future of water economic regulation, we often discuss issues extending beyond the water sector.

Bristol Water’s view on cost efficiency

Assessing how efficient each company is forms a major part of the price determination process, where Ofwat sets the amount of revenue we are allowed to collect over the following five-year period. How this assessment is carried out is a matter of expert judgement, with numerous measures and techniques available.

To support our understanding of how efficient we are relative to other water companies, we have commissioned economic consultants NERA and Economic Insight to analyse the factors that drive costs in our wholesale and retail operations respectively, and how they should be combined into an assessment model.

Ofwat is shortly due to publish a consultation on the approach that it should adopt on efficiency assessment. We have provided this analysis to Ofwat for consideration in the development of its consultation. We are also publishing it today on our website to provide stakeholders and customers with a transparent view of our recommendations.

A simplified approach to setting outcome incentives

The value of small, local water-only companies

Will it all be upper futile in the end

Cover Letter

BRL - NERA Wholesale Water Cost Model Report

BRL - PR19 Cost Model Submission

BRL-WSX - Economic Insight Residential Retail Cost Model Report

Regulating for consensus and trust

BRL response letter - PR24 and beyond creating tomorrow together

Strengthening Wholesaler performance and service in the business retail market

In July 2018 Ofwat published ‘Open for Business’, a report which assessed the state of the business retail market after its first year. For Bristol Water, it is critical for our retailers’ customers and the successful operation of the retail market.

BRL - Response Letter - CRI Wholesaler Performance

CFI - Wholesaler Performance - Nov18

Driving transformational innovation in the sector

Ofwat has been exploring options for customer-funded interventions designed to drive innovation to benefit customers in the longer term.

Ofwat’s Strategy to Drive Innovation

BRL innovation consultation response

Measures to reduce personal water use

 Climate change, population increases, environmental requirements, and growing demand for water will mean that, in the future, there will be substantial pressure on surface and groundwater supplies, less water available per person, and a significant likelihood of more frequent, severe droughts. This consultation was launched by Defra to help the government understand a wider range of potential measures to reduce personal water consumption, and the level of reduction in water consumption that is technically feasible and/or achievable.

Defra consultation on reducing personal water use

Defra consultation on reducing personal water use - BRL response

Net zero carbon by 2030

We have identified a range of ways that we can meet the challenge of hitting net zero carbon by 2030. 

Our routemap to net zero carbon by 2030

Climate Change Adaptation

The science of climate change continues to develop and the water industry has played a leading role in this. We will continue to engage in this process and will continue to review our vulnerability to the impacts of climate change.

2021 Climate Change Adaptation Report