Informing the development of access pricing methodologies

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Client CCWater
Dates 2014
Service(s)Policy & Economics, Regulation & Competition

The last five years have been an exciting time for the water sector in England and Wales, as the Government and Ofwat have embarked into a number of substantive changes including a reform to introduce more competition in the sector. As the sector turns more competitive new areas of analysis arise and need to be tackled. Access pricing is one of these areas. In order for entrants to start competing in the market, there has to be a clear approach that regulators would follow to ensure entrants can access the assets of incumbents when this is beneficial for customers.

CCWater commissioned CEPA to review possible approaches to access pricing. We produced a report in which we discussed a number of possible approaches and outlined the principles on which an appropriate access pricing methodology should be chosen.

CCWater used our report to engage with Ofwat and ensure that reforms undertaken by Ofwat were for the benefits of customers.