The 2019 price review (PR19) final determinations included reconciliation adjustments to take account of company performance in 2015-20. Forecast data was used for the 2019-20 financial year (the blind year) as this had not yet finished, and companies reported actual 2019-20 performance alongside their Annual Performance Reports (APRs) in July 2020. We used this data to assess the difference between the 2019-20 performance assumed in the PR19 final determinations and actual 2019-20 performance; and our resulting PR19 blind year draft proposals were published in September 2020.
The PR19 blind year final decisions documents present our conclusions regarding the reconciliations and interventions we are making to reflect actual company performance in 2019-20; this includes an overview document summarising key industry issues and 17 company-specific documents.
We used data models to calculate the appropriate reconciliations and interventions for each company and these were based on the past delivery modelling suite developed (and published) as part of the PR19 final determinations. We updated these models to take account of actual company performance in 2019-20 as reported in their 2020 APRs and, for each company, we publish the following revised past delivery models used to develop the PR19 blind year final decisions.
- Totex reconciliation model
- Wholesale Revenue Forecasting Incentive Mechanism model
- Residential (household) retail model
- Land sales model
- RCV adjustments feeder model
- Revenue adjustments feeder model
We also publish a water trading model for Northumbrian Water, Thames Water and Portsmouth Water, an aggregation model for South West Water and an enforcement model for Southern Water.
For the PR19 blind year final decisions, we have also used new models to calculate both the blind year adjustments and the impact on the price limits we set in December 2019, arising from the variation between forecast and actual performance in 2019-20. For each company we also publish:
- a PR19 BY ODI difference model
- an in-period adjustment model
- a blind year adjustments model
The blind year revenue adjustments will apply 2021-22 across the remaining years of 2020-25 price controls. The blind year Regulatory Capital Value (RCV) adjustments and retail revenue adjustments will apply from 2025.