Everything businesses need to know as the Competition and Markets Authority confirms final PR24 determinations in England and Wales.

Background

A price control sets the maximum level of revenue that water companies can recover through customer charges. In December 2024, Ofwat confirmed the new price control for each of the 16 regulated water wholesalers for the period 2025-2030. According to Ofwat, these determinations would result in an average bill increase of £157 (36%) over the five-year period.*

Five companies - Anglian Water, Northumbrian Water, South East Water, Southern Water and Wessex Water - argued that the outcome of the price review leaves them unable to deliver the regulatory commitments set out for them.

On March 10, the Competition and Markets Authority (CMA) released its final PR24 price control determinations for the five companies that appealed Ofwat’s original decisions.* This marks the end of a year long redetermination process and provides long awaited clarity for the business water sector as it prepares for the next regulatory period.**

Appeals

The PR24 appeals were formally referred to the CMA in March 2025, following challenges from the five companies on several aspects of Ofwat’s final determinations.** The CMA issued provisional findings in October 2025 and opened a consultation to gather responses from industry stakeholders. Its final determination, published on 10 March, concludes that process.

For most companies, the outcomes offer adjustments to key elements such as allowed revenues and cost allowances. However, Northumbrian Water has emerged worse off, receiving a lower allowed revenue position than under Ofwat’s original determination.

What this means for the business water market

The disputing companies asked for further increases in revenue of £2.7 billion in total on top of the £26.6 billion allowed to them by Ofwat, as well as changes to the Outcomes Framework.

The final determinations outline that while some additional revenue was granted, the CMA allowed only 17% (£463million) of the £2.7billion collectively requested, down from the provisional 21% figure. ***

The rulings also reinforce sector priorities such as environmental obligations, pollution reduction and investment resilience, all expressly referenced in the CMA’s reasoning.

For the business water sector, the CMA’s final decisions provide much needed stability. This decision is especially important as customers in the business water market continue to navigate rising water costs and environmental pressures.

Ofwat’s response: clarity and forward focus

Ofwat’s Interim Chief Executive, Chris Walters, welcomed the CMA’s conclusion, highlighting that companies can now fully focus on delivering the record levels of investment outlined for PR24. He also noted that Ofwat will reflect on the CMA’s findings as it prepares for the next review cycle - signalling potential shifts in the regulatory approach ahead of PR29.***

You can read more about price increases across England and Wales on our website.

Upcoming regulatory news

Thames Water is still working with regulators on its future price plan, so the impact on bills remains unclear. We're monitoring this closely and will update customers as soon as we know more. Additionally, we are working closely with Ofwat on its review of retail prices to ensure they are fair and reflective of customer behaviours and wider industry changes. Once finalised, this will take effect from April 2027 and we will update customers when further information is available.

Sources:

* www.gov.uk

**PR24 Final determinations summary

*** CMA reaches final decision on disputed price controls for five water companies - Water Magazine