Final Methodology

graphic of landscape

Our methodology for PR24 sets out how we will drive companies to deliver more for customers and the environment.  The methodology reflects our four key ambitions for the review: focus on the long term, deliver greater environmental and social value, reflect a clearer understanding of customers and communities, and drive improvements through efficiency and innovation.

Key documents

Creating tomorrow, together: our final methodology for PR24 Overview

Creating tomorrow, together: our final methodology for PR24

Creu yfory, gyda’n gilydd Ein methodoleg derfynol ar gyfer PR24 Rhagair a crynodeb gweithredol

Delivering UK government priorities for the English water sector through our 2024 price review final methodology

Delivering Welsh Government priorities for the Welsh water sector through our 2024 price review final methodology

Cyflawni blaenoriaethau Llywodraeth Cymru ar gyfer y sector dŵr yng Nghymru drwy ein methodoleg adolygiad prisiau 2024 terfynol

Technical appendices 

PR24 Final Methodology – Appendix 1 Affordability

PR24 Final Methodology – Appendix 2 Water trading incentive

PR24 Final Methodology – Appendix 3 Developer services

PR24 Final Methodology – Appendix 4 Bioresources control

PR24 Final Methodology – Appendix 5 Direct procurement for customers

PR24 Final Methodology – Appendix 6 Your Water, Your Say

PR24 Final Methodology – Appendix 7 Performance commitments

PR24 Final Methodology – Appendix 8 Outcome delivery incentives

PR24 Final Methodology – Appendix 9 Setting expenditure allowances

PR24 Final Methodology – Appendix 10 Aligning risk and return

PR24 Final Methodology – Appendix 11 Allowed return on capital

PR24 Final Methodology – Appendix 12 Quality and ambition assessment

PR24 Final Methodology – Appendix 13 Data and modelling

PR24 Final Methodology – Appendix 14 Impact assessments

Additional documents 

PR24 final methodology – glossary

Guidance for water companies: testing customers’ views of the acceptability and affordability of PR24 business plans

Guidance for water companies – Principles for setting out comparative company performance data

FTI Consulting – Early view of water sector betas for PR24

PwC – Retail services efficiency review 2022

Submissions tables

The Submission tables and the 12 guidance documents are available on a single page.

Financial models

PR24 final methodology financial model (Openbox file)

PR24 final methodology financial model (Excel file)

PR24 final methodology post external review financial model (Openbox file)

PR24 final methodology post external review financial model (Excel file)

PR24 final methodology financial model user guide.

PR24 RCV adjustments feeder model

PR24 Revenue adjustments feeder model

PR24 balance sheet cost of debt model

Consultation on return on RCV calculations in the PR24 financial model

PR24 Final Methodology Model Review Report

 Model Suite Diagram

 PR24 final methodology model suite diagram

City Briefing

Our final methodology for PR24 – Script for City briefing, 13 December 2022

Our final methodology for PR24 – Slides for City briefing, 13 December 2022

Ofwat PR24 City Briefing Transcript of presentation and Q&A

Video recording of the PR24 Final Methodology: City Briefing

Direct Procurement for Customers Guidance

Guidance for water companies delivering direct procurement for customers projects