LONDON (ShareCast) - Severn Trent Water and United Utilities on Thursday said they were set to provide a business plan to regulator Ofwat amid a crackdown on water prices.

Ofwat has launched a regulatory review of prices in the utility sector for the period 2015 to 2020.

Severn Trent said it has continued a "constructive dialogue with Ofwat on its business plan".

The UK utility has asked for more evidence on wholesale water costs, namely the Birmingham strategic resilience project, which accounts for £255m of total expenditure over the five years.

"We need to ensure there is sufficient time and opportunity to fully engage with Ofwat on these evidence requests and on the case for the resilience project, including the importance that our customers place on this project, the support that our customer challenge group has provided and our assessment of the risks of not proceeding with the project," Severn Trent said.

The company has decided to re-submit its plan to Ofwat on June 27th to receive an August draft determination.

United Utilities also said that is has told Ofwat that it expects to submit its revised business plan by June 27th.

"This will enable the company to fully consider the detailed feedback received from Ofwat and other stakeholders, ahead of submitting its revised plan," the firm said.

Ofwat's draft determination is scheduled to be published on August 29th and the final determination is due on December 12th.

RD

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE