Ofwat statement (12 illustrated landscape pages, 1.2M PDF) on its work plans for the next three years.

Ofwat consultation (about 6 pages) on proposals to "refocus" the overall performance assessment (OPA) “away from those aspects of service where standards and other enforcement tools are available or appropriate” so that it “focuses on the qualitative aspects of service that is the consumer experience”.

This would tend to decouple OPA incentives from capital expenditure incentives (which are to be mainly governed by a menu scheme put forward by Ofwat — see sections 4.2 and 6.1.2 of Ofwat's March 2008 paper). Ofwat acknowledges a “need to look further at the balance between the operating expenditure rolling incentives and a refocused OPA”.

Ofwat determination (37 pages, PDF) ordering Anglian Water to reduce the wholesale charges that it offers to Aquavitae for water supply at four sites under the Water Act 2003 water supply licensing arrangements.

Ofwat's determination is expressed in terms of margins between retail and wholesale charges which range between 0.36 and 1.89 per cent. These figures are between 3.3 and 4.5 times larger than the discounts originally offered by Anglian to Aquavitae.

Ofwat states that:

7.3 We are disappointed with the level of discounts that have resulted from our determination. Although these discounts are higher than those offered by Anglian Water, the determination confirms (using real data) our existing theoretical analysis of the Costs Principle. In particular, a licensee is required to pay the incumbent’s unavoidable retail costs as well as its own entry costs, which can reduce significantly the net discounts available. We continue to believe that the Costs Principle remains one of the most significant barriers to the development of effective retail competition.

This determination is Ofwat's response to Aquavitae's August 2007 competition complaint. Ofwat decided not to investigate the matter under competition law.

Ofwat statement (70 pages, PDF) on its approach and information requirements for the review of water and sewerage charges in England and Wales from April 2010. Draft business plans are due on Monday 11 August 2008.

Ofwat consultations on licence modifications following the change of ownership of Southern Water (19 pages, PDF) and South Staffordshire Water (14 pages, PDF). Both companies are now controlled by infrastructure funds through complex structures. Ofwat proposes to take the usual opportunity to update licence modifications, including introducing the cash lock-up condition. Responses by Friday 4 April 2008.

Letter (about 5 pages) summarising the work conducted or commissioned by Ofwat to review aspects of its approach to leakage. This complements the reports published in November 2007.

In relation to methods for setting future leakage targets, the letter links to a consultancy report (119 pages, PDF) and states that:

[A frontier approach to setting leakage targets] involves normalising the leakage management performance of water companies, and driving less efficient companies to catch up with the performance of the best (or 'frontier') companies. This approach has the potential to deliver continuing efficiency improvements for all companies, with innovation from the catch-up companies leading to improvements in industry best practice. We decided that this 'frontier approach' to target setting was worth investigating further. We see it working in conjunction with – rather than replacing – the ELL [efficient level of leakage]. In November 2007 we said that we, together with the Environment Agency, would complete a further piece of work that would set out precisely how a frontier approach would work in practice and examine the costs and benefits of adopting such an approach.

We have now commissioned consultants to carry out the work on developing a frontier approach. They are due to complete their final report in April 2008. We will share this report with the industry and other stakeholders by publishing it on our website. If we conclude that the frontier approach to target setting is achievable and realistic, and that it can deliver net benefits, we will launch a full public consultation in May about the possible change in approach. If the results of the consultation lead us to adopt a new approach, we will report our conclusions by October, so that companies will have time to follow it in their final business plans and water resource management plans for PR09.

Ofwat notice (3 pages, PDF) that it has extended the time for representations on the proposed £11.1 fine on Thames Water from Wednesday 6 February 2008 until Wednesday 20 February 2008, at Thames Water's request.

(The September 2007 notice linked above was replaced with a revised notice in January 2008: see the Ofwat press notice on that variation.)

Defra paper (98 pages, 2.1M PDF) on the Government's policy towards water issues in England. This is presented as the response to the “drought in South East England in 2004-06, and the floods of 2007”.

There are consultations on draft social and environmental duties for Ofwat (21 pages, PDF), drainage (106 pages, PDF) and phosphates in washing powder (47 pages, PDF). Responses by Wednesday 30 April 2008.

Update, 28 February 2008: Defra has published some information on a one-year investigation into options for greater retail competition in water.