The Competition and Markets Authority (CMA) has been granted a six-month extension to complete its redetermination of the 2024 Price Review (PR24) for five major UK water companies. The process, originally scheduled to conclude by September 2025, will now run until 17 March 2026 following Ofwat’s approval of the CMA’s extension request, citing the “nature and scale of the work involved” and the “associated procedural complexity”
The redetermination follows references requested by Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water. Each company has expressed concerns that Ofwat’s Final Determination does not adequately support critical investment in infrastructure, resilience, and environmental performance. Anglian Water, with a proposed £11.2 billion business plan, argued that the decisions place long-term service delivery at risk due to underfunded asset maintenance. South East Water and Southern Water raised similar concerns, citing pressures from population growth and climate change. Wessex Water, which is seeking an additional £850 million beyond Ofwat’s allocation, warned of delays to vital upgrades and increased customer bills. Northumbrian Water stressed that a £160 million shortfall for asset health investment jeopardised future reliability.
Ofwat maintains that its PR24 determinations strike a balance between investment and customer value. “Final determinations were based on a robust examination of all funding requests made by companies to ensure every pound of customer bills provides value for money, delivers real improvements and enables the sector to attract the investment it needs,” said Chris Walters, Senior Director for the Price Review at Ofwat.
Separately, Thames Water requested a CMA referral in February but has since agreed with Ofwat to defer the formal reference by up to 18 weeks. The company stated it is exploring a market-led recapitalisation, which could remove the need for a CMA process. Discussions remain ongoing.
The CMA’s final decisions will have lasting implications for the sector’s investment climate, customer outcomes, and environmental commitments.
