In the implementation letter to Chief Executive Officers of licenced water and wastewater, and water only companies in England and Wales, dated 13 April 2018, we set out a programme of work to rebuild trust and confidence in the water sector.
This document sets out our proposals to make targeted amendments to, and clarifications of, the methodology for the PR19 price setting process, which companies will need to take into account in preparing their business plans for submission by 3 September 2018. In particular, we consult on a new proposal for PR19 to require companies to share financing outperformance from high gearing.
We also set out our expectations for PR19 business plans around the transparency of policies on dividends and the performance related element of executive pay, and how these relate to company performance. We provide additional clarification on how we expect companies to demonstrate financial resilience in their PR19 business plans.
We consider the proposals set out in this document will help put the sector back in balance with the aim of rebuilding trust and confidence in the water sector.
We welcome responses to this consultation, which consider in particular how trust and confidence can be rebuilt in this sector by putting customers at the heart of company and investor considerations, by close of business on 17 May 2018.
Please email responses to [email protected] or post them to: Benefits sharing consultation, Ofwat, Centre City Tower, 7 Hill Street, Birmingham B5 4 UA