I contend that the methodology was applied fairly and consistently to all companies. I provided evidence for this in Future Charges for Water and Sewerage Services, the document which not only set out my methodology but also the numbers - for capital investment, for return on capital and for efficiency savings.
You suggest that the scope for cost-cutting in the companies has been underestimated. I would be interested to know on what or whose evidence you base your view. The basis for my judgement was explained publicly.
I consulted widely before deciding what was an appropriate level of return for the industry as I did on every other major aspect of my review. The process was also made public.
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