Pennon Group's South West Water gets boost from watchdog

10th Mar 2014 07:58

Water regulators have given a boost to Pennon Group, saying its regulated water utility South West Water has qualified for a fast-track passage through its price review for the next regulatory period.Ofwat said South West Water and another company, Affinity Water, had pre-qualified for "enhanced" status due to the high quality of their business plans.The watchdog said it was now asking the companies to accept its risk and reward and cost of capital guidance, which Ofwat published on January 27th."If South West Water and Affinity Water accept the guidance and undertake a number of other limited actions, they will gain the advantages of enhanced status - including a fast-track through the price review process - benefiting both the companies and their customers," Ofwat said in a statement.Ofwat's Chief Regulation Officer, Sonia Brown added: "The plans submitted by South West Water and Affinity Water stand out. These companies have achieved plans of particularly high quality, with a consistent focus on listening and responding to what their customers want."PW