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Letters to Managing Directors
MD 185 31 March 2003 REPORTER PROTOCOL I attach issue 2 of the protocol which replaces issue 1 attached to MD130. In August 2002 we consulted major stakeholders – companies, reporters and consultancy firms – on proposed changes to the current reporter appointment arrangements set out in version 1 of the protocol attached to MD130. A summary of the responses to our consultation letter of 13 August 2002 is attached at Annex 1. It is clear that the respondents gave careful consideration to our proposals and questions and we are grateful for their inputs. In the light of these we have made a number of revisions to the draft protocol and Appendix A attached to our consultation letter. These are referred to in the summary and are identified in the control sheet. We have dealt with the major issues set out in the consultation letter as follows: Harmonisation of the reporter appointments We will establish with each company a timetable for the letting of their reporter contract for the AMP4 period. In doing so we will confirm with each company how closely they wish Ofwat to be involved at the selection and award stages of the appointment process. We will continue to approve, or not approve, the appointee recommended by the company. We will publish on our website the overall timetable for the AMP4 (2005-2010) appointments in mid 2004. We will develop with those companies who wish to do so a common set of tender documentation and costing schedules. We would issue this to all companies as a guidance document outside of the protocol. We will set out our realistic assumptions about the activities and workload of the reporter for the AMP4 period. Ofwat's approach to the appointment of reporters Appendix A to the protocol sets out the background to our approach to the appointment of reporters and the selection and award criteria we will apply. We regard the disqualification criteria as being prescriptive in nature and have therefore included them in the protocol. We have limited the tenure of the named reporter with a single company to ten years. We will consider representations from companies for extensions to this period on a case by case basis. We will similarly consider with companies the approach to be adopted for mid term appointments. Would you please arrange for version 2 of the protocol to be applied with immediate effect. PHILIP FLETCHER Encs
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