CMA final decision on water price control is ‘progress’, says Citizens Advice

Citizens Advice has responded to the Competition and Markets Authority’s (CMA) final decision on appeals by four water companies against their price control, known as PR19. This updates the provisional findings proposed last year.

Alistair Cromwell, Acting Chief Executive of Citizens Advice, said:

“This announcement shows the CMA has listened to the concerns of Citizens Advice, Ofwat and others who said it had initially been far too generous to water companies. 

“Today’s announcement is progress and a better deal for consumers than the CMA originally proposed. However, the CMA should have gone further in cutting back the excess profits made by water companies.”

Background

• In response to its initial decision (September 2020) on the water companies’ appeals Citizens Advice stated the CMA had ‘bowed to industry pressure at the expense of consumers’

• In October 2020 Citizens Advice research showed UK consumers could lose out by £3.7bn if the CMA stuck with its original decision and the same approach was applied to energy network price controls as well.

Notes to editors

1. Citizens Advice includes the national charity; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.

2. Citizens Advice is the statutory consumer advocate for energy and post. We provide supplier performance information to consumers and policy analysis to decision makers.

3. The Citizens Advice Witness Service provides free, independent support for prosecution and defence witnesses in every criminal court in England and Wales.

4. Citizens Advice offers Pension Wise services at 500 locations in England and Wales.

5. Citizens Advice’s services are free, independent, confidential and impartial, and available to all regardless of race, gender, disability, sexual orientation, religion, age or nationality.

6. To get advice online or find your local Citizens Advice, visit citizensadvice.org.uk

7. For consumer advice, call the Citizens Advice consumer service on 0808 223 1133 or 0808 223 1144 to talk in Welsh.

8. We helped 2.6 million people face to face, by phone, email and webchat in 2017-18. For service statistics see our monthly publication Advice trends.

9. Citizens Advice staff are supported by over 23,000 trained volunteers, working at over 2,500 locations in England and Wales.