Cornwall Insight was commissioned by Thames Water to provide a bespoke forecast of wholesale electricity and third party charges using the company’s own portfolio and consumption profile. Thames Water is one of the UK’s largest water and wastewater companies, with approximately 15mn customers across the London and Thames Valley regions. Operating under a regulatory price control sector by Ofwat, the provision of such forecasts is important to Thames Water as both a consumer and a generator of electricity.
For the project, Cornwall Insight developed forecasts based upon Thames’ own portfolio and consumption profile for the period to 2025-26, utilising the output of its off-the-shelf Third Party Charges report and its wholesale price modelling as the basis for this analysis. Thames Water provided a full breakdown of its consumption portfolio to enable the analysis to be undertaken, with forecasts provided by meter type and by DNO region. Forecasts were provided on an annualised basis and were accompanied by a full report detailing the modelling outcomes, the methodology used by Cornwall Insight and the assumptions employed.
These forecasts were used by Thames Water to support the submission of regulated business costs to Ofwat under its price control.