Enhancement cost assessment modelling for the PR19 Initial Assessment of Plans

This report considers the use of econometric modelling for enhancement costs in the England and Wales’ water sector price review (PR19) and makes recommendations for how this could be improved during the remainder of the review. This inter-disciplinary analysis, commissioned by Anglian Water, uses engineering evidence on causal factors, and econometric evidence on current modelling approaches to inform its recommendations. Key overarching issues include the model selection process, measurement of relative efficiency across the sector, and the use of industry data in statistical modelling.