Indicative Access Prices
The Water Act 2003 has opened up new opportunities for competition in the water industry, by setting up a framework for licensed water suppliers to have access to water undertaker's networks, on either a wholesale or a combined supply basis.
Under the provisions of the Water Industry Act 1991 (as amended by the Water Act 2003) and the guidance documents published by the industry's regulator, Ofwat, undertakers must follow a specific methodology in producing access prices.
Here we present indicative access prices for both wholesale and combined supply for the period 2005-10. These indicative prices were produced in August 2005 and reflect our cost base in 2004-05. These prices follow the methodology and format specified by Ofwat, and are intended by Ofwat to give potential licensees a broad indication of likely prices for standard situations.
It is important to note that in any case-specific situation, the assumptions underlying the indicative prices (set out with the prices) may need to be adjusted, which may lead to differences between indicative and case-specific prices.