PR24: Charting the Course for a Resilient and Sustainable Water Future

The 2024 Price Review (PR24) by Ofwat marks a pivotal moment in the regulation of water services in England and Wales. PR24 sets the framework for water companies from 2025 to 2030, focusing on sustainability, resilience, and customer service. Here's an overview of the key elements:​

1. Environmental Stewardship

PR24 places a strong emphasis on environmental protection. Water companies are expected to:​

• Achieve zero serious pollution incidents by 2030.

• Reduce total pollution incidents by 30% by 2029-30.

• Ensure 100% compliance with discharge permits.

• Invest in nature-based solutions to enhance biodiversity.​

These commitments align with the UK's broader environmental goals and aim to mitigate the impact of water services on natural ecosystems.​

2. Resilience and Infrastructure

To address the challenges of climate change and population growth, PR24 mandates:​

• Enhanced investment in infrastructure to prevent pollution and accommodate larger populations.

• Development of strategies to manage water demand and ensure long-term resource availability.

• Improved resilience to flooding and other climate-related events.​

These measures are designed to ensure that water services remain reliable and efficient despite evolving environmental pressures.​

3. Customer-Centric Approach

PR24 underscores the importance of serving and protecting customers by:​

• Implementing performance commitments that enhance service quality and affordability.

• Encouraging transparency and accountability through regular reporting and customer engagement.

• Fostering innovation to meet diverse customer needs effectively.​

By prioritising customer satisfaction, PR24 aims to build trust and ensure that water services meet the community's expectations.​

4. Performance Commitments and Incentives

Water companies are held accountable through specific performance commitments, including:​

• Reducing leakage and per capita consumption.

• Improving customer experience metrics.

• Meeting environmental targets.​

Companies that meet or exceed these commitments may receive financial incentives, while those that fall short could face penalties. This approach encourages continuous improvement and aligns company performance with regulatory expectations.​

5. Investment and Economic Considerations

PR24 supports record levels of investment, with water companies expected to spend £104 billion over the next five years. This funding will be directed towards:​

• Infrastructure enhancements.

• Environmental protection initiatives.

• Technological advancements to improve service delivery.​

By facilitating substantial investment, PR24 aims to ensure that water services are sustainable and capable of meeting future demands.​

Conclusion

PR24 represents a comprehensive approach to regulating water services, balancing environmental responsibility, infrastructure resilience, customer satisfaction, and economic viability. Through clear performance commitments and a focus on long-term sustainability, PR24 sets a course for a resilient and customer-focused water sector in England and Wales.​