This investigation, known as the Water PR24 price redeterminations, is a critical regulatory step to ensure fair pricing and investment in the UK water sector from the CMA.
In started in March 2025 when Ofwat referred the 2024 Price Review (PR24) final determinations for five water companies—Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water—to the Competition and Markets Authority (CMA) for redetermination. At The Competition Lawyers, we are here to break down this complex issue, explain its implications, and highlight how it could affect consumers and businesses.
The Water PR24 price redeterminations reportedly stem from disputes over Ofwat’s £104 billion investment plan for 2025–2030, aimed at improving water infrastructure, resilience, and environmental outcomes. However, the five companies argue that the allowed funding falls short, potentially impacting service quality and financial stability. The CMA’s review, now extended to March 2026, is to reassess these determinations to balance consumer interests with the companies’ operational needs.
The Water PR24 price redeterminations are not just a regulatory procedure; they can have far-reaching consequences for households, businesses, and the environment. The CMA’s role is to conduct a thorough review of Ofwat’s decisions, ensuring that price controls promote consumer welfare, long-term infrastructure resilience, and fair returns for investors. This process is understood to be guided by the Water Industry Act 1991 and the CMA’s overriding objective to handle redeterminations fairly and efficiently.
For consumers, the outcome could influence water bills, which have already been set to rise in 2025 due to the increased investment. The disputing companies’ push for additional funding might lead to further bill hikes if approved, a concern given that many customers are already worried about affordability. Meanwhile, businesses reliant on water services could face cost increases, affecting their operations. The CMA’s focus on prioritising key issues, as outlined in its approach document published on 28 May 2025, ensures that the redetermination addresses the most pressing concerns, such as asset maintenance and environmental performance.
At The Competition Lawyers, we know the importance of advocating for consumers and businesses affected by issues like the Water PR24 price redeterminations. Our expertise in competition law means we always monitor the CMA’s processes closely, keen to see that the interests of customers are never overshadowed. We understand the importance of fair pricing and reliable water services, and we know the importance of being committed to holding regulators and companies accountable.
The CMA has invited third-party submissions until 22 April 2025 to inform its redetermination process, providing an opportunity for consumer and business groups to voice their concerns. Experts can assist in preparing impactful submissions to ensure all perspectives are heard. Additionally, if the redetermination leads to unfavourable outcomes, such as unjustified bill increases, legal avenues could be explored to challenge decisions that harm consumers or businesses.
The Water PR24 price redeterminations may well shape the future of water services and pricing in England and Wales. It is important that decisions pass without voices not being heard.
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