Initial assessment of business plans – cost assessment models

 

We use data models to calculate water companies’ price controls – and certain information we need to set those controls.

The aim of cost assessment modelling suite is to assess companies’ business plan costs and calculate an efficient total expenditure allowance.

We publish the following models.

1.Enhancement feeder models: the enhancement feeder models include our assessment of enhancement costs.

2.Cost adjustment claim feeder models: these models include our assessment of companies’ cost adjustment claims. There is one model per company that submitted cost claims.

3.Unmodelled base costs and other costs feeder models: This is a suite of models that sets out our assessment and allowance for Abstraction charges, Business rates, Third party costs, Pension deficit recovery costs, Traffic management act costs.

4.Aggregator files: These are intermediary files and do not present assessment.

5.Reallocations aggregator: This file includes costs that we have reallocated from one enhancement line to another enhancement line or to base costs.

6. Thames Tideway separate control: Includes our assessment of costs submitted as part of the Thames tideway separate control for Thames Water.

7.We have a suite of four models for wholesale water, wholesale wastewater and residential retail.

  • FM_RR1, FM_WW1 and FM_WWW1 are the master datasets.
  • FM_WW2 and FM_WWW2 calculate the catch up efficiency challenge.
  • FM_RR3, FM_WW3 and FM_WWW3 determine the forecast of our explanatory variables. We use them to set efficient costs from our econometric model.
  • FM_RR4, FM_WW4 and FM_WWW4 calculate efficient base costs and efficient totex per price control. We do this by adding together our efficient modelled costs, any enhancement costs, cost adjustment claims, unmodelled base costs.  In retail we also calculate the forward looking catch up challenge.
  • Three do files that calculate the coefficients for our econometric models.

Enhancement feeder models

Water

Wholesale Water Supply-demand balance enhancement – feeder model
Wholesale Water Supply-demand balance enhancement – feeder model summary
Wholesale Water Enhancement feeder model: Drinking water protection
Wholesale Water Enhancement feeder model: Ecological improvements
Wholesale Water Enhancement feeder model: Eels regulations
Wholesale Water Enhancement feeder model: Freeform
Wholesale Water Enhancement feeder model: Growth
Wholesale Water Enhancement feeder model: Investigations
Wholesale Water Enhancement feeder model: Improvement to river flows
Wholesale Water Enhancement feeder model: Invasive species
Wholesale Water Enhancement feeder model: Lead standards
Wholesale Water Enhancement feeder model: Low pressure
Wholesale Water Enhancement feeder model: Metering
Wholesale Water Enhancement feeder model: Raw water deterioration
Wholesale Water Enhancement feeder model: Resilience
Wholesale Water Enhancement feeder model: Security
Wholesale Water Enhancement feeder model: Taste, odour, colour
Wholesale Water Enhancement feeder model: Water framework directive

Wastewater

Wholesale Wastewater Enhancement feeder model: Chemicals investigations
Wholesale Wastewater Enhancement feeder model: Chemicals removal
Wholesale Wastewater Enhancement feeder model: Conservation drivers
Wholesale Wastewater Enhancement feeder model: Discharge relocation
Wholesale Wastewater Enhancement feeder model: Eels regulations
Wholesale Wastewater Enhancement feeder model: Event duration monitoring
Wholesale Wastewater Enhancement feeder model: First time sewerage
Wholesale Wastewater Enhancement feeder model: Freeform
Wholesale Wastewater Enhancement feeder model: Flow monitoring
Wholesale Wastewater Enhancement feeder model: Flow to full schemes
Wholesale Wastewater Enhancement feeder model: Groundwater schemes
Wholesale Wastewater Enhancement feeder model: Growth
Wholesale Wastewater Enhancement feeder model: Investigations
Wholesale Wastewater Enhancement feeder model: Monitoring flows at combined sewer over flow events
Wholesale Wastewater Enhancement feeder model: N-removal
Wholesale Wastewater Enhancement feeder model: Odour
Wholesale Wastewater Enhancement feeder model: P-removal
Wholesale Wastewater Enhancement feeder model: P-removal technology investigations
Wholesale Wastewater Enhancement feeder model: Resilience
Wholesale Wastewater Enhancement feeder model: Sanitary parameters
Wholesale Wastewater Enhancement feeder model: Security
Wholesale Wastewater Enhancement feeder model: Sludge
Wholesale Wastewater Enhancement feeder model: Spill frequency
Wholesale Wastewater Enhancement feeder model: Storm tank capacity
Wholesale Wastewater Enhancement feeder model: Transfered private sewers
Wholesale Wastewater Enhancement feeder model: Ultraviolet disinfection

Cost adjustment claim feeder models

Cost adjustment claim feeder model Affinity Water
Cost adjustment claim feeder model Anglian Water
Cost adjustment claim feeder model Bristol Water
Cost adjustment claim feeder model Hafren Dyfrdwy
Cost adjustment claim feeder model United Utilities
Cost adjustment claim feeder model Portsmouth Water
Cost adjustment claim feeder model SES Water
Cost adjustment claim feeder model South East Water
Cost adjustment claim feeder model Southern Water
Cost adjustment claim feeder model South Staffs Water
Cost adjustment claim feeder model Severn Trent Water
Cost adjustment claim feeder model South West Water
Cost adjustment claim feeder model Thames Water
Cost adjustment claim feeder model Dwr Cymru
Cost adjustment claim feeder model Wessex Water
Cost adjustment claim feeder model Yorkshire Water

Unmodelled base costs and other costs feeder models

Unmodelled costs feeder model: Abstraction
Unmodelled costs feeder model: Business Rates
Unmodelled costs feeder model: Other Costs
Unmodelled costs feeder model: Pension deficit repair costs
Unmodelled costs feeder model: Traffic management act

Aggregator files

Feeder model: Enhancement aggregator
Feeder model: Cost Adjustment Claims aggregator
Feeder model: Unmodelled costs aggregator

Reallocations aggregator

Feeder model: Enhancement Reallocation aggregator

Thames Tideway separate control

Thames Tideway separate control

Wholesale water models

Feeder model 1: Wholesale water – Master data
Feeder model 2: Wholesale water – Water Catch up adjustment
Feeder model 3: Wholesale water: Forecast of water cost drivers
Feeder model 4: Wholesale water – Water resources and water N+ cost allowances
Stata do files_Regressions, wholesale water

Wholesale wastewater

Feeder model 1: Wholesale wastewater – Master data
Feeder model 2: Wholesale wastewater – Wastewater Catch up adjustment
Feeder model 3: Wholesale wastewater: Forecast of wastewater cost drivers
Feeder model 4: Wholesale wastewater – Bioresources and wastewater N+ cost allowances
Stata do files: Wholesale wastewater

Residential retail

Feeder model 1: Retail – Master data
Feeder model 3: Retail – Forecast of retail cost drivers
Feeder model 4: Retail cost allowances
Stata do files: Retail

Supporting files for econometric modelling

Density indices