In-period ODI determinations

At the 2019 price review we set water companies service targets (‘performance commitments’) during 2020-25. This encourages the companies to deliver on the objectives that matter to today’s customers, future customers and the environment.

Most of companies’ performance commitments have rewards and penalties (‘outcome delivery incentives (ODIs)’) associated with them.

The majority of these ODIs are financial.

  • If a company performs better than the performance commitment level, it may get a financial reward (‘outperformance payments’)
  • If a company performs worse below the performance commitment level it may pay a financial penalty (‘underperformance payments’)

In this way, each company’s management and its investors are encouraged to deliver what customers want. They get outperformance payments for doing well; and make underperformance payments if they do badly.

In-period payments

Most of the outperformance or underperformance payments companies get for financial ODIs are paid to or recovered from each company every year during 2020-25 (or ‘in-period’).

We think this is better than waiting five years until the next price review process. This is because companies get the financial impact closer in time to the performance that generated it. This focuses each company’s management on delivering better services year after year and improves companies’ accountability to their customers.

In-period ODI determinations 2020-25

An in-period determination is the process by which we adjust each company’s price controls to reflect companies’ performance against these in-period ODIs.

Unlike the five yearly price reviews, in-period determinations have to be triggered by either us or the water companies. So they may not be required every year for every company.

In-period determinations for 2020-21

On 5 October 2021, we published our in-period outcome delivery incentives draft determinations for 2020-21. We welcome any written comments or representations on our draft determinations by 21 October 2021. Representations can be sent to our inbox [email protected].

 

Company Consultation on our draft in-period ODI determination Consultation response Final in-period ODI determination
Affinity Water Affinity Water – Draft determination To be added To be added
Anglian Water Anglian Water – Draft determination To be added To be added
Bristol Water Bristol Water – Draft determination To be added To be added
Dŵr Cymru Dŵr Cymru – Draft determination To be added To be added
Hafren Dyfrdwy Hafren Dyfrdwy – Draft determination To be added To be added
Northumbrian Water Northumbrian Water – Draft determination To be added To be added
Portsmouth Water Portsmouth Water – Draft determination To be added To be added
SES Water SES Water – Draft determination To be added To be added
Severn Trent Water Severn Trent  – Draft determination To be added To be added
South East Water South East Water – Draft determination To be added To be added
South Staffs Water South Staffs Water – Draft determination To be added To be added
South West Water South West Water – Draft determination To be added To be added
Southern Water Southern Water – Draft determination To be added To be added
Thames Water Thames Water – Draft determination To be added To be added
United Utilities United Utilities – Draft determination To be added To be added
Wessex Water Wessex Water – Draft determination To be added To be added
Yorkshire Water Yorkshire Water – Draft determination To be added To be added
Sector wide report Sector wide report – Draft determination n/a To be added

Download the sector data for the 2020-21 draft determinations.

Any in-period ODI determinations for 2021-22, 2022-23 and 2024-25 will appear here.

We will carry out in-period ODI determinations for 2023-24 as part of our 2024 price review.