About Consultation
This document consults on our methodology for the 2019 price review (PR19) for the water and wastewater monopoly service providers in England and Wales.
The methodology sets out:
- our expectations and requirements for companies preparing their business plans to meet the needs of their customers from 2020 to 2025 and beyond;
- how these expectations form the basis for the tests that we will use to assess company business plans;
- the approach that we will use if we need to intervene in those plans to ensure that companies deliver the step change required by customers; and
- how our assessment will flow through into companies’ price limits, service commitments and the wider incentive framework.
We welcome your responses to this consultation by 30 August 2017. Please email them to [email protected] or post them to: PR19 draft methodology, Water 2020, Ofwat, Centre City Tower, 7 Hill Street, Birmingham B5 4UA.
Summaries
Appendices
Appendix 1 – Addressing affordability and vulnerability
Appendix 2 – Delivering outcomes for customers
Appendix 3 – Outcomes technical definitions
Appendix 5 – Water resources control
Appendix 6 – Bioresources control
Appendix 7 – Wholesale revenue incentives
Appendix 8 – Water resources legacy RCV allocation: initial submission
Appendix 9 – Company bid assessment frameworks: the principles
Appendix 10 – Direct procurement for customers
Appendix 11 – Assessment of the duration of retail controls
Appendix 12 – Securing cost efficiency
Appendix 13 – Aligning risk and return
Appendix 14 – Initial assessment of business plans
Appendix 15 – Approach to impact assessment
The following are spreadsheets (xlsx). If you have difficulties opening them directly, try right-clicking and choosing ‘save as’ and saving them to a suitable file location.
Water 2020 draft methodology response template
Cost sharing spreadsheet model
CoD indexation mechanism spreadsheet (updated to correct an error, 15 August 2017)
Business plan data tables
Guidance on business plan data tables
The following are spreadsheets (xlsx). If you have difficulties opening them directly, try right-clicking and choosing ‘save as’ and saving them to a suitable file location.
PR19 BP tables – Appointee 1 to 6
PR19 BP tables – Appointee 7 to 29
PR19 Jan 2018 tables – WR RCV allocation
Financial rulebook
This is a spreadsheet with macros (xlsm). If you have difficulties opening it directly, try right-clicking and choosing ‘save as’ and saving them to a suitable file location.
The draft financial model and rulebook
Feeder models
This is a spreadsheet with macros (xlsm). If you have difficulties opening it directly, try right-clicking and choosing ‘save as’ and saving them to a suitable file location.
Revenue adjustments feeder model
Independent reports
Direct procurement for customers (KPMG)
Refining the balance of incentives for PR19 (PriceWaterhouseCoopers)
Ofwat PR 19 Taxation (Deloitte)
Performance commitments and outcome delivery incentives at PR19 (Frontier Economics)