Ofwat 2004/2005 report on expenditure and finances

Ofwat's annual report (95 pages, PDF) on operating expenditure, capital expenditure and financial indicators for water and sewerage companies in England and Wales in 2004/2005. The report highlights operating expenditure and depreciation charges in excess of the level assumed in the price limits set in 1999. The operating expenditure deviation is attributed to increases in input costs and to a greater use of operating expenditure solutions to service delivery. The depreciation deviation is attributed to apparent differences between companies' assessment of future renewal expenditure requirements and the depreciation and infrastructure renewals charges included in regulatory returns, which Ofwat will be asking companies to review ahead of the 2006 returns.

For further information or advice please contact Franck Latrémolière.

Filed under Ofwat, Water.

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