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.
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.
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.
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.
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