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Review of the Approach to Efficiency Assessment in the Regulation of the UK Water Industry

Price: £600


Ref: 07/RG/04/2
ISBN: 1 84057 437 2

Could Ofwat conduct price control reviews without relying on econometric modelling and imposing the data collection burden that this entails? Could Ofwat find more robust and transparent ways of analysing and combining evidence about companies' future expenditure requirements?
This report considers these questions in response to the recommendation for a "joint industry review of efficiency studies and econometric approaches" included in the independent report commissioned by Ofwat on the conduct of the 2004 periodic review.

Topics covered in the report include:

  • How Ofwat could develop its current approach.
  • Radical alternatives to the current approach.
  • The use of panel data analysis and other econometric techniques.
  • The role of top-down productivity studies.
  • The reconciliation of evidence from different sources and techniques.

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