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.
*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)