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RD 6/00
TO THE REGULATORY DIRECTORS OF ALL
WATER AND SEWERAGE COMPANIES AND
WATER ONLY COMPANIES
29 February 2000
REPORTERS' AND AUDITORS JOINT WORKSHOP 14
The Director held Joint Workshop 14 with Reporters and Auditors on 7 February 2000.
The objective of the Workshop was to - Summarise the Final Determinations and to thank the Reporters and Auditors for their contributions to the final phase of the Periodic Review.
- Encourage Reporters' and Auditors' contributions to the Ofwat Review of the Periodic Review.
- Clarify the focus of the Monitoring Plan and the Reporters' task for that submission and for JR2000.
- Develop Reporters' and Auditors' awareness of regulatory developments and the probable inputs that would be required from the reporters and auditors.
- Describe the Reporter appointments process, timetable and future contract duration.
Key points were- The Director thanked the Reporters for their help in the Price Review, particularly their assistance to him regarding costs. Their assistance was very valuable.
- Presentations were made to the Best Reporters for JR98, Update of Quality Costing, Business Plan and JR99. This completed the awards for PR99 Best Reporters. The complete list is:
| Main Quality Costing | Roger Sawdon and team for South West Water |
| Supply & Demand | John Brindley and team for Southern Water |
| JR98 | Roger Sawdon and team for South West Water
John Holmes and team for Folkestone & Dover Water |
| Cost Base | David Arnell and team for Northumbrian Water |
| Asset Inventory | James Davies and team for North West Water |
| Strategic Options | Jeremy Long and team for Anglian Water |
| Update of Quality Costing | Roger Sawdon and team for South West Water
Jon Bateman and team for South Staffs Water |
| Business Plan | John Brindley and team for Southern Water
Ian Cartwright –Taylor for Mid Kent Water |
| JR99 | David Arnell and team for Northumbrian Water
John Wild for Bournemouth & West Hampshire Water |
- The focus of the Monitoring Plans is on outputs and activities. Monitoring Plan line definitions are different to those in the Business Plan and JR2000, and Reporters should check they have been followed. Further guidance was given on the commentary expected of the Reporters.
- For JR2000 less priority should be given to base service operating costs, and more emphasis on depreciation charges. A short report on progress should be submitted in early May by the Reporters. The assistance required from Reporters on GSS consolidated data, data for capital maintenance econometrics (table 32a), capex variation from the 1994 Determination (tables 35b/36b), and progress with outputs and completion dates, and the risk of slippage, was outlined.
- We briefly outlined the work for Reporters and auditors arising from the Notified Items - Vulnerable Groups, Bad Debt, and Optional Metering take up; the Competition Act, arising from with inset appointments and common carriage; EA monitoring of water resource plans; and changes to quality obligations,. The contribution that could be made by Reporters in reporting on transfer pricing issues – RAG5.02 – was discussed.
- Finally Ofwat's proposals to publicise the Reporter role via the Ofwat website, the contract letting timetable and proposed changes to the duration of future contracts were described.
Yours sincerely
Irene Millward
Reporters Coordinator |
Letters to Regulatory Directors
