Correction to water distribution infrastructure econometrics

Ofwat notice that a change has been made to the econometric model used to compare companies' capital maintenance expenditure on water distribution infrastructure: the elasticity of expenditure per km of pipe to the number of properties per km of pipe has been increased from 0.70 to 0.74.

Update, 15 February 2007: At some point between the original publication of this letter and today, the link that there was in the original letter to replacement pages (5 pages, PDF, now a broken link) was replaced with a link to the revised version (produced on 2 February 2007) of the annex (14 pages, PDF) to the December 2006 report. The original annex does no appear to be available from the Ofwat website anymore. [Franck Thu 15 Feb 2007, 8:19 pm]

For further information or advice please contact Franck Latrémolière.

Filed under Ofwat, Price controls, Water.

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