6. In our Guide, paragraphs 3.13 to 3.16, we set out the CMA’s approach to the prioritisation and deprioritisation of issues in water redetermination references. 5 In particular, we have been mindful of whether in respect to specific issues: (a) any concerns have been raised by any main or third party; (b) we have identified any potential concerns, for instance in Ofwat’s approach; (c) there is any impact on other parts of the redeterminations; and/or (d) there is a significant scale of impact on current and/or future customer bills and/or other outcomes, including but not limited to service quality and resilience. 7.
In doing so, we have been mindful of the degree to which there are points of principle common across the Disputing Companies. Invitation to submit views 8. We welcome submissions from main and third parties, including from those representing customers’ interests, on our proposed approach. Submissions are most useful when they are supported by evidence. 9. We invite views in particular on: (a) whether we have prioritised appropriately; and (b) other aspects of our approach, including:
(i) our proposal to explore a data-driven approach to variable selection using econometric tools for base cost modelling (ie to use modelling techniques to review which inputs should be included in the models) (see paragraphs 43 to 44); (ii) the treatment of new evidence, data and information, including data cut-offs (see paragraphs 83 and 95 to 98 below); and (iii) the treatment of certain issues raised by several parties as common issues (paragraphs 27 to 28). 10. For the avoidance of doubt, we do not require restatement of arguments or evidence covered in the substantial volume of submissions already provided to us. 5 See footnote 4 above. 5