How we calculate our charges

The prices that Dee Valley Water and other water companies can charge their customers are regulated by Ofwat. The price limits are based on a comprehensive five-yearly strategic business plan prepared by us as part of the Periodic Review Process. The business plan sets out in detail our investment requirements to maintain and improve our service, as well as any required changes resulting from alterations to UK and European legal standards and what it will mean to customers in terms of services and prices. The price limits for the five-year period commencing January 2015 were set by Ofwat in November 2014.

The fact that charges may increase at a rate above inflation reflects the significant amount of investment required to achieve the necessary standards for your water supply. The change in charges each year will be calculated by applying the formula RPI +/- K, where RPI is the retail price index published in November the prior year and K is a value approved by Ofwat which companies are allowed to increase charges by. K is determined during the Periodic Review Process and is influenced by our ability to provide a good service to our customers.

When developing a business plan, we take into account the views of our customers on what our strategic objectives should be and on the value for money of the services we provide. In our business plan the major focus for investment is on the replacement and maintenance of strategic assets, particularly water mains and treatment works. This should ensure that the risks of failure to maintain a safe water supply in the future are maintained at the current low level.