Water Services Regulation Authority (Prior Period Adjustments)

Lord Benyon Excerpts

Monday 14th February 2011 Written Statements

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Richard Benyon)]

Ofwat’s Prior Period Adjustments (PPA) following the Chief Secretary’s decision that departments will not be including PPA’s on the face on estimates for 2010-11 for the alteration of the IAS 35 standard and in respect of the removal of costs of capital charge from accounts, budgets and estimates are as follows:

Prior Period Adjustments

Non-Voted

Cost of capital charge

Costs of capital charges (CCC) have been removed from accounts, budgets and supply estimates in accordance with HM Treasury’s Consolidated Budgeting Guidance (CBG). However, the department had liabilities greater than its assets and so attracted a cost of capital credit. The removal of the CCC increases resources in DEL. The PPA in respect of the previous two years is shown in the table below.

Summary table