OFWAT Issues Delivering 2020 - PR19 Price Review Methodology

Article Date: 13th July 2017

Water industry regulator Ofwat has today launched a consultation on the methodology for its forthcoming 2019 price review, the framework that regulates the price and service packages water companies must deliver for their customers for the 2020-25 period.

 

Today’s proposals, which are centred on four themes, challenge water companies to step up to deliver for their customers, now and in the longer term. As part of the price review process, Ofwat will be assessing water companies’ business plans to ensure that they understand what their customers need and also that plans are ambitious enough to deliver for their customers across the themes outlined.

The regulator said companies with exceptional plans would benefit from early certainty, public recognition and financial benefits. Where plans are not considered to be of sufficiently high quality and stretching, Ofwat will step in to protect customers’ interests.

The 2019 price review is aiming for a step change in the following areas in particular:

  • Great customer service: demonstrating real responsiveness, reliability and innovation in the way in which companies interact with and service their customers;
  • Long-term resilience ‘in the round’: including focusing on the long term, understanding and effectively mitigating risks and having in place the right people, infrastructure and processes, as well as robust finances and corporate structures, including at board level;
  • Affordability: by improving efficiency and delivering water bills that are affordable for all, including those struggling to pay; and,
  • Innovation: by working with customers, making greater use of markets and learning from best practice in other sectors to improve service and increase efficiency.

Where appropriate, Ofwat is planning to promote markets in PR19 to encourage innovation through water trading, the bioresources market and greater third party involvement in large projects through direct procurement.

Proposals include 14 core common performance commitments

Read full article here  and to access the full documentation visit OFWAT website

 

 

This was posted by future water association in Industry News

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