Business challenge
Jointly commissioned by CCW and Ofwat, this research was designed to inform the PR24 Draft Determinations (DDs). Its goal was to understand customer perspectives on proposed service levels and pricing for 2025–2030. The research aimed to provide insights into acceptability and affordability perceptions, ensuring regulatory decisions were grounded in consumer priorities. Additional objectives included identifying regional variations and giving voice to seldom-heard and digitally disengaged groups.
Our approach
We conducted a comprehensive review of how water companies had interpreted and implemented the guidance, evaluating:
- Sampling strategies and inclusivity, including push-to-web approaches, company-led sampling, and Index of Multiple Deprivation profiling to ensure low-income household representation
- Survey design, particularly how acceptability and affordability were explored, including measures capturing degrees of financial strain rather than treating affordability as binary
- Stimulus materials, and whether they enabled informed decisions without bias
- Data comparability across companies in terms of metrics and outputs.
Our assessment drew on:
- Detailed reviews of company research reports
- Evidence from CCW’s Draft Determinations research
- Comparative analysis of methodologies
- Triangulation with wider sector insights.
We also advised on where the guidance could be made more prescriptive to improve consistency and where greater flexibility could be permitted without compromising quality
Outcome
Our final report provided an independent assessment of the quality, consistency, and comparability of company-led affordability and acceptability research. It supported Ofwat and CCW in refining expectations for future price controls by identifying where the methodology delivered on its aims – including representativeness, stimulus clarity, and comparability – and where guidance could be strengthened.