The gated process
The gated process relates to the funding of investigations and development of water resources solutions from April 2020 until March 2024.
There are four gates during this period. At each gate, companies submit information about their work on a solution, which is assessed to ensure companies are making progress on investigation and development of solutions. Ofwat also decides whether companies should continue to be allowed funding to further investigate and develop a solution to the next gate.
The purpose of the gated process is to ensure at each gate that:
- companies are progressing strategic water resource solutions that have been allocated funding at PR19;
- costs incurred in doing so are efficient; and
- solutions merit continued investigation and development during the period 2020 to 2025.
Gate one is a first opportunity to check progress on investigations and development of solutions in the gated process. At gate one, all solutions are expected to proceed to gate two, meaning that companies can continue to spend ring-fenced funding on their investigation and development to gate two, unless there is a really clear reason why they no longer merit this.
Gate two will look at the solutions in more detail with focus on ensuring that funding for continued investigation and development of solutions is aligned to water resources planning. Decisions about whether or not a solution goes ahead will be made through water resources planning and subsequently applications for local planning and environmental consents.
Timing of the gates
Below is an image showing the timing of the gates or view a timetable of the gated process.
For more information see PR19 final determinations: Strategic regional water resource solutions appendix and the 2021 SRO Guidance.