Watergroup News - Issue 12

May 2008

In this, our twelfth bulletin, we:

• examine the recent Ofgem announcement to commence a two year review of the current, and very successful, RPI-X regime;
• summarise our conclusions on the accounting treatment of costs incurred by companies on Price Review 2009;
• provide an update on menu regulation following Ofwat’s final methodology paper for Price Review 2009 ‘Setting price limits for 2010-15: Framework and approach’;
• give consideration to reducing value leakage from major contracts as the time approaches for the water industry to re-negotiate AMP 5 Capital Framework arrangements;
• describe a potential opportunity for water companies to reclaim VAT on various professional costs incurred at the time of previous transactions;
• provide an update on how you can get involved with the charitable work that WaterAid is doing;
• publish a short summary of recent industry news; and
• provide a hyperlink to specific publications, articles and news on OFWAT’s website.