|
|
|
|
|
|
|
|
|
|
|
| |  Letters to Managing Directors |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MD 223
To Managing Directors of all
water and sewerage companies
and water only companies 5 April 2007
Strategic Direction Statements
This letter sets out our expectations for the Strategic Direction Statement (SDS) you will deliver between June and December 2007.
The strategic direction statement, signed off by your Board, should set out for your consumers, regulators and other stakeholders your direction of travel over the long term – say 25 years hence. This is your opportunity to set out your vision clearly and show how it delivers for your consumers and the environment. Your strategy will help us, and others, to consider your draft and final business plans in a long term context.
We expect you to consult with your consumers and publish your strategic direction statement before you prepare your draft business plan. We expect you to show that your strategy is supported by stakeholders and grounded in consumer priorities. We anticipate that you will have discussed your priorities with Consumer Council for Water, Environment Agency, Drinking Water Inspectorate at a local level and Natural England and Countryside Council for Wales.
Your statement should include at least the following:
- your plans to deliver for consumers and the environment in the long term (i.e. at least 25 years ahead) including clean and safe drinking water and reference to the Water Sector Plan;
- the impact this has on, among other things, the management and stewardship of assets, and innovation;
- your approach to issues such as climate change and sustainability;
- your consumers' priorities;
- the objectives of your long term charging strategy, how you plan to achieve this and the implications for bills;
- the major risks and how you will manage these; and
- how you expect to finance the strategy.
We encourage you to consider the sustainability of your current approaches to achieving environmental and drinking water quality outcomes and the potential impact competition may have in the sector. The strategic direction statement is an opportunity to set out a longer term research and development agenda, especially where this is a pre-requisite for further sustainable solutions.
Where you make assumptions about the future please set these out clearly.
You can choose your own format for the strategic direction statements, we expect you to publish them in a consumer-friendly way. We will place each statement on our website on receipt. Please supply us with both printed and electronic version of your statement.
We expect you to publish and send us your strategic direction statement no later than 14 December 2007. We would like to meet with you to discuss your strategic direction within one month of receiving it. To facilitate this we would find it helpful if you could let us know your expected date of publication within the period 1 June to 14 December. In return, we will fix dates for your Board Lead Contact and your company adviser to visit you or meet you here to enhance our understanding of your strategy and highlight any areas for development ahead of draft business plans.
I would like to thank you in advance for your engagement and work in developing this longer term vision. We are looking forward to receiving your strategic direction statements and to working with you to understand how your business is planning for the longer term.
Regina Finn
|
|
