Pennon's South West Water granted 'enhanced' status by Ofwat

4th Apr 2014 11:15

Pennon Group's subsidiary, South West Water (SWW), has been granted 'enhanced' status by industry regulator Ofwat as part of its 2014 price review. Ofwat, which last month was awarded pre-qualified status, said it was now satisfied with the changes made to SWW's business plan for the 2015-2020 period and believes it will "deliver the best outcomes for customers". The regulator's Chief Executive, Cathryn Ross, said: "In this price review we challenged companies to change their approach and they have. I am pleased to see increased ownership from boards and much greater engagement with customers. "Such changes are crucial if the sector is to retain the necessary trust and confidence of the public."SWW was the only water and sewerage company to have its 2015-20 business plan pre-qualify for 'enhanced' status, together with one water-only company, Affinity Water. As an 'enhanced' status company, SWW will, according to the regulator, gain "reputational, financial and procedural benefits", including an initial financial award of £11m. Ofwat's Chief Regulation Officer, Sonia Brown added: "Our process aimed to encourage high quality, customer-focused plans. South West and Affinity's plans really stood out. Both the company and their customers will benefit from being enhanced. "There is still a way to go before we set final prices in December. We are focused on making sure all companies' plans deliver the best deal for customers."The regulatory body is due to announce its draft on price limits for SWW and Affinity at the end of April. NR