The Water Company and how the Framework Provided by UK Water Industry Affects It

We give companies incentives to keep their running costs and the costs of maintaining their assets to the minimum necessary and to use cost-efficient solutions to achieve their outputs. Where companies are successful, they retain the savings for five years and customers benefit at the next price review through price limits which take account of the efficiencies achieved.
Companies have to manage their water resources and the situation varies from region to region. For example, resources are abundant in the north-east of England, but there are shortages in the south-east. Companies have water resource plans to make sure that they are able to continue to supply water to their customers. We work with the Environment Agency to make sure that companies can meet customers' demand for their water services. …