Price control deliverables

Price control deliverables (PCDs) set out our expectations for delivery specifically on improvements (or ‘enhancements’), funded through enhancement expenditure allowances. Where water companies fail to deliver these outcomes or outputs, they will return funding to customers.  

PCDs are another regulatory tool we use to encourage companies to deliver the funded improvements on a timely manner and to protect customers from companies failing to deliver these improvements or deliver them late.  

Previously, we used a form of PCD at the 2019 price review to protect material enhancement investments in areas where there is no regulatory oversight from other regulators (i.e. resilience). In PR19, we referred to these incentives as scheme-specific performance commitments. PCDs are also used in other sectors. For example, Ofgem uses PCDs to adjust allowances downwards in response to scale of non-delivery for commercial Electric Vehicle Fleets, Gas Holder demolitions and cyber resilience.    

PCDs will: 

  • increase our oversight of delivery through increased reporting and the assurance requirements on what companies are delivering;  
  • protect customers from companies failing to deliver the funded improvements by returning the funding to customers; and
  • encourage companies to deliver on time by applying time-based incentives.  

We set out our overall approach to PCDs in section 4.7.2 of PR24 draft determinations: Expenditure allowances 

We set out our detailed PCD proposals in PR24 draft determinations: Price control deliverables appendix. This sets out the common requirements for price control deliverables in each area. 

 Company specific PCD requirements are set out in the excel files below: