The Competition and Markets Authority (CMA) has delivered a stinging rebuke to Ofwat, the water regulator ministers ‘abolished’ back in July. The CMA found the failing regulator’s sums were off by an eye-watering £556 million…
The CMA said Ofwat’s economic models were overly complex, used the wrong data in some areas and designed penalties that could actually discourage performance improvements:
“We made changes to Ofwat’s economic modelling… Our approach results in simpler models that explain a larger share of cost differences. Ofwat did not use appropriate data… [and] the way the penalties were calculated would disincentivise efforts to improve performance.”
Because of this, five water firms are to be provisionally allowed to raise their bills by between 1% and 5% more than previously granted by Ofwat. Meanwhile, the zombie regulator still holds responsibility for debt-ridden Thames Water. Time to pull the plug…
![Keith Ellison Caught Promising to Fight State Agencies for Somali Fraudsters [WATCH]](https://www.right2024.com/wp-content/uploads/2026/01/Keith-Ellison-Caught-Promising-to-Fight-State-Agencies-for-Somali-350x250.jpg)
