The future approach to price-setting in the wholesale value chain
The passing of the Water Act 2014 and Ofwat’s Water 2020 programme mean that the approach to pricing in the wholesale water and sewerage value chains needs to be re-considered. Separate price controls, access charges and price signals might be considered as tools to promote contestable markets and more effectively regulate monopoly activities. Allocation of the Regulatory Capital Value (RCV) across the value chain might also be considered. In this context, UKWIR has commissioned FTI Consulting LLP to consider options which might be available for upstream pricing in the future and to undertake a preliminary assessment of those options. This report contributes to the industry’s thinking on these issues by presenting a range of evidence, drawing on theory, practical experience in other sectors and applied analysis of what these reforms might mean for the water industry.
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|UKWIR Reference :- 15/RG/07/37||Published Date :- 08/12/2015|
|Retail Price (£) :- 30||ISBN :- 1 84057 801 7|