Southern Water is looking for a number of expert advisors to provide business and management consultancy and related services in the run-up to AMP7.
The water company intends to go out to tender in December to put a number of contracts in place for the provision of independent third party economic, regulatory, strategic and technical advice/ assurance.
All areas covered will require an understanding of regulatory requirements.
The utility is looking for a wide range of support services, including:
- checking the alignment of processes or outputs to regulatory requirements
- undertaking technical assessment of processes/procedures
- interpreting and advising on regulatory models and guidance
- undertaking business performance modelling
- assurance over non-financial Performance Commitments (PCs) and Outcome Delivery Incentives (ODIs) as defined in the Final Determination by Ofwat
- assurance over other appropriate inputs to Ofwat Annual Performance Report as outlined in Regulatory Accounts guidance
For business planning, Southern Water is looking for support from a strategic assurer to help understand the way that Ofwat will assess the contents of its PR19 business plan. The supplier will be required to provide advice as the company drafts and co-ordinates the wholesale, retail and appointee aspects of the plan.
The adviser will also be expected to review and comment on updated and new sections of the plan at specific milestones and also identify areas that could be improved to better align with Ofwat’s requirements and expectations.
Technical assurance will include the integration of other regulatory requirements which share common areas with Ofwat’s planning approach – for example, Water Resource Management Planning – and support to define PCs/ODIs in the approach to the upcoming AMP7 2020-25 investment programme (eg CMEX/DMEX).
The scope, aim, timeframes and objectives will be defined at a project level for each engagement/work package. The initial contract will run for four years, with options to extend the agreement by a further 4 years in total.
The water company is looking to appoint up to eight participants to the framework agreement.
Estimated date of publication of the contract notice is 13th December 2018 – with the time limit of 28th December for the receipt of applications for an invitation to tender or expressions of interest.
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