We use data models to calculate water companies’ price controls – and certain information we need to set those controls.
The purpose of the past delivery modelling suite is to perform the reconciliations of the 2014 price review incentive mechanisms operating for companies during 2015-20.
We will apply the reconciliation adjustments to companies’ 2020-25 price controls. We use the revenue and Regulatory Capital Value (RCV) adjustments produced by the reconciliation models as inputs for the PR19 financial model in the revenue adjustments feeder model and the RCV adjustments feeder model.
For each company we publish:
- a model for each reconciliation
- a revenue adjustments feeder model
- a RCV adjustments feeder model.
The past delivery models use companies’ data submission to us in July 2018 – except where the companies’ narratives for their September 2018 submissions describe changes to the proposed adjustments. In these cases the models use the September 2018 data submission. The models do not reflect other minor updates to data from the September 2018 submissions.