Use of econometric models for cost assessment at PR19

This report sets out recommendations on the use of econometric models for wastewater cost assessment in England and Wales. The work extends previous inter-disciplinary analysis by Vivid Economics and Arup on the causal factors of efficient wholesale wastewater costs, and produces a recommended suite of models based on these factors. The report combines a diverse set of engineering and statistical evidence to provide fresh insights into sub-service cost modelling and regulatory efficiency bench-marking.

This report is the second part to this project.

The first report is available for download here.

Date: January 2018

Client

United Utilities

Sectors:

Water

Capabilities:

Market Design & Economic Regulation

Regions:

UK