As part of the price review process, water companies developed business plans for the services they plan to deliver for 2015-20. Companies submitted their business plans to us by 2 December 2013. We are now carrying out a risk-based review of business plans. Our risk-based review will contain tests for high quality in four key areas.
- Outcomes – the company’s key proposed deliverables for consumers, including current and future customers and the environment, and the incentives associated with delivering them.
- Costs – the costs, for both wholesale and retail businesses, associated with delivering the company’s proposed outcomes.
- Risk and reward – how the company’s proposals balance risk and the rewards for bearing those risks between consumers, including current and future customers and the environment, and the company and its investors.
- Affordability and financeability – the impact of the company’s proposals on customers’ bills, and its ability to finance its functions.
- Companies pre-qualifying for ‘enhanced’ status
- Outcomes of the risk-based review and next steps
- Information from water companies’ business plans on their proposed average bills, connected household customers and doubtful debts in 2015-20
- Information all companies provided to us in their business plans in December 2013, which we are republishing to help companies to improve their plans. Figures are given in 2012-13 prices
- Setting price controls for 2015-20 – risk-based review recommendations to Ofwat’s Board about companies’ business plans
- Setting price controls for 2015-20 – information about South West Water’s bad debt adjustments