An urgent cash advance of £1.5 million will be required on 27 February 2014, to fund Ofwat’s ongoing operating cost commitments while it awaits Royal Assent of its supplementary estimate.
Ofwat is heavily committed to the successful delivery of the 2014 price review and is reliant on the expert input of a number of suppliers to deliver highly specialised work and help meet peaks of demand associated with the price review. Without this input Ofwat would be unable to regulate effectively and protect the interests of 52 million consumers in England and Wales.
Parliamentary approval for additional resources of £3,850,000 will be sought in a supplementary estimate for the water services regulation authority. Pending that approval, urgent expenditure estimated at £1,500,000 will be met by repayable cash advances from the Contingencies Fund.