Reckon: unit cost trends in the water and sewerage industry

Reckon LLP report for Ofwat on the future scope for operating cost and capital cost efficiency in the England and Wales water and sewerage industry (190 pages, PDF). This work was commissioned as part of the 2009 price control review.

The report includes analysis of historical changes in:

The report also contains a qualitative bottom-up analysis of the sources of productivity growth affecting water and sewerage capital expenditure, based on input from Jacobs Engineering UK Ltd.

The report provides forecasts of the growth in water and sewerage industry operating expenditure and unit capital expenditure over the price control period from 2010 to 2015.

Ofwat plans to take account of the report, among other evidence, to inform the efficiency assumptions used to make its draft and final determinations in July and November this year.

The report builds on previous work that Reckon has carried out on the use of industry-level cost and productivity analysis as part of price control reviews for utilities.

For further information or advice please contact Nicholas Francis.

Filed under Price controls, Reckon LLP, Water.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

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