PR24 Performance commitment definitions

The outcomes framework for the 2024 price review (PR24) holds water companies to account for the outcomes that customers pay for and incentivises companies to go further where it is in the interests of customers and the environment. We do this by defining performance commitments which measure the level of service provided for a particular outcome.

On this page we set out:

  • definitions of common performance commitments, which apply to all water companies subject to the outcome of the PR24 determination process; and
  • our earlier feedback and draft determinations on  bespoke performance commitment proposals, which may apply to individual water companies.

Common performance commitment definitions

The table below provides links to definitions for common performance commitments which will be measured for all companies in England and/or Wales for the 2025-30 period.

Data submitted by companies should be subject to rigorous and high-quality assurance. This is critical to provide confidence to us, customers and other stakeholders that the information reported is accurate and reliable. Where we are concerned about the quality of data, we may intervene to protect customers and ensure that companies do not benefit from insufficient data quality.

The performance commitment definitions have only been firmed up following an extensive consultation process. Subsequently, with new information available to us since receipt of companies’ business plans, we have identified amendments as explained in our ‘PR24 draft determinations: Delivering outcomes for customers and the environment’. New or updated definitions are marked with an asterisk in the table below, amendments are shown in red text and recapped within the definition’s version control. These performance commitment definitions are subject to the outcome of the PR24 final determinations process.

We said in our PR24 methodology that where it is used, we expect to use the version of third party material that is in effect at the date of our PR24 final determinations, subject to the outcome of the PR24 determinations process. We have updated the materials at the time of draft determinations, and will provide another update at the time of final determinations, if any.

No. Common performance commitment for PR24 Link to performance commitment definition Link to third party material
1 Customer measure of experience (C-MeX)* Customer measure of experience (C-MeX) – PC definition
2 Developer services measure of experience (D-MeX)* Developer services measure of experience (D-MeX) – PC definition D-MeX levels of service metrics detailed definitions
3 Business customer and retailer measure of experience (BR-MeX)* Business customer and retailer measure of experience (BR-MeX) – PC definition
4 Business customer experience in Wales Business customer experience in Wales – PC definition
5 Water supply interruptions Water supply interruptions – PC definition
6 Compliance Risk Index (CRI) CRI – PC definition DWI Compliance Risk Index (CRI) definition
7 Customer contacts about water quality* Customer contacts about water quality – PC definition DWI Information letter 01/2024

DWI Information letter 04/2022

8 Internal sewer flooding Internal sewer flooding – PC definition
9 External sewer flooding External sewer flooding – PC definition
10 Biodiversity* Biodiversity – PC definition Defra statutory biodiversity metric

NRW’s letter on assessing habitat condition regarding biodiversity

NRW’s letter on distinctiveness regarding biodiversity

NRW’s letter on strategic significant areas regarding biodiversity

 

11 Operational greenhouse gas emissions (water)* PR24 operational greenhouse gas emissions performance commitment (water)
12 Operational greenhouse gas emissions (wastewater)* PR24 operational greenhouse gas emissions performance commitment (wastewater)
13 Leakage* Leakage – PC definition
14 Per capita consumption (PCC) Per capita consumption – PC definition
15 Business demand* Business demand – PC definition
16 Total pollution incidents Total pollution incidents – PC definition Environment Agency Environmental Performance Assessment (EPA) methodology v9

Environment Agency Environmental Performance Assessment (EPA) methodology v8

Common Incident Classification Schemes (CICS) – Environment Agency

Incident Categorisation – Natural Resources Wales

Briefing note – Natural Resources Wales

17 Serious pollution incidents Serious pollution incidents – PC definition Environment Agency Environmental Performance Assessment (EPA) methodology v9

Environment Agency Environmental Performance Assessment (EPA) methodology v8

Common Incident Classification Schemes (CICS) – Environment Agency

Incident Categorisation – Natural Resources Wales

Briefing note – Natural Resources Wales

18 Discharge permit compliance Discharge permit compliance – PC definition Environment Agency Environmental Performance Assessment (EPA) methodology v9

Environment Agency Environmental Performance Assessment (EPA) methodology v8

19 Bathing water quality Bathing water quality – PC definition Bathing water regulations 2013
20 River water quality* River water quality – PC definition
21 Storm overflows* Storm overflows – PC definition
22 Repairs to burst mains* Repairs to burst mains – PC definition
23 Unplanned outage Unplanned outage – PC definition
24 Sewer collapses Sewer collapses – PC definition

*denotes new or amended definition at draft determinations.

Bespoke performance commitment proposals

We signalled in chapter 5 of the PR24 methodology that common performance commitments would be used for most areas of companies’ performance. We also said that bespoke performance commitments, in a small number, are appropriate where:

  • there are local circumstances that do not apply to most other companies and there is compelling evidence that a performance commitment is required to provide incentives to drive benefits for customers, communities and the environment, or
  • a company provides poor service on a common issue where other companies’ performance is generally adequate and the risk of performance deteriorating is low – such a performance commitment is likely to have underperformance payments only.

We asked companies to provide their bespoke performance commitment proposals with supporting evidence by 14 April 2023.

We reviewed their proposals and informed companies of our views and feedback in May and July 2023. These are as follows:

IN 23/02 Submission guidance for PR24 bespoke performance commitment definitions, February 2023

Reflections on initial assessment of bespoke performance commitments, May 2023

PR24: Assessment of bespoke performance commitment proposals, July 2023

In October 2023, we received 17 bespoke performance commitment proposals. Our decisions can be found in the Outcomes appendices of respective companies.

PR24 bespoke performance commitment definition template (updated 15 August 2024)