PR24 to PR29: Cost Modelling, AI and Executive Judgement

August 7, 2026

The way water company costs are assessed is changing, and the decisions taken now could have significant financial and operational consequences at the next Price Review.

On Thursday 10 September 2026, at Sidney Sussex College, University of Cambridge, Dr Melvyn Weeks will lead a strategic one-day workshop exploring how regulation, cost modelling, artificial intelligence and executive judgement are coming together ahead of PR29, the next Price Review.

Dr Weeks is Associate Professor of Economics at the University of Cambridge and a Fellow of Clare College. His expertise spans econometrics, machine learning and the application of artificial intelligence to economic and regulatory analysis.

As new analytical methods gain influence and AI begins to shape how regulatory evidence is reviewed, challenged and presented, senior leaders need to understand what is changing, where the risks sit and how to respond.

Led by Dr Weeks and supported by VISION Consulting as lead sponsor, the workshop will give participants the knowledge to engage with the issues, challenge the assumptions behind cost models and make better-informed decisions ahead of PR29.

REGISTER HERE TODAY!  

Why attend?

The 2024 Price Review introduced a different approach to cost modelling through the use of LASSO, a statistical method used to select cost drivers. With Ofwat being replaced and a new regulatory framework emerging, this approach could influence future decisions unless the sector develops a clear and credible alternative.  The workshop will give you the knowledge to engage with these issues with greater confidence.

What you will learn

You will leave with a clearer understanding of:

  • how water company costs are assessed
  • what the Competition and Markets Authority changed at the 2024 Price Review
  • what LASSO is and why it matters
  • the strengths and weaknesses of algorithmic cost modelling
  • what the Cunliffe review means for future regulation
  • how artificial intelligence could support regulatory analysis
  • where AI is reliable and where human judgement is still essential
  • how to challenge models using operational and engineering evidence

No advanced statistical knowledge is required.

Why this matters now

The next Price Review will shape future funding, investment and performance expectations. Senior leaders need to understand the methods behind these decisions, the assumptions built into them and the risks of relying too heavily on automated analysis. The issue is not whether AI and statistical models will be used it is how they will be governed, challenged and applied.

REGISTER HERE TODAY!  


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