Delivering Water 2020: Consulting on our methodology for the 2019 price review

Delivering Water 2020: Consulting on our methodology for the 2019 price review

Published date: July 11, 2017
Closing date: Wednesday August 30th, 2017 5:00pm

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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 water2020@ofwat.gsi.gov.uk or post them to: PR19 draft methodology, Water 2020, Ofwat, Centre City Tower, 7 Hill Street,  Birmingham B5 4UA.

Summaries

Executive summary

Delivering UK Government priorities for the English water sector through our 2019 price review draft methodology

Delivering Welsh Government priorities for the Welsh water sector through our 2019 price review draft methodology

Appendices

Appendix 1 – Addressing affordability and vulnerability

Appendix 2 – Delivering outcomes for customers

Appendix 3 – Outcomes technical definitions

Appendix 4 – Resilience: Task and Finish Group recommendations and draft resilience planning principles

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)

Translation of UKCSI into SIM

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.

IAP pro forma

PR19 BP tables – Appointee 1 to 6

PR19 BP tables – Appointee 7 to 29

PR19 BP tables – Retail

PR19 BP tables – Wastewater

PR19 BP tables – Water

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

RCV 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)