Water industry regulator Ofwat has published details of the financial model it has developed as part of the price review to help it assess companies' business plans.
The three main purposes of the financial model are to:
- determine the wholesale price controls
- calculate the revenues arising from the retail price controls
- help assess financeability of the company
The new information published on Ofwat’s website sets out further minor changes to the model following external review and feedback from stakeholders.
The regulator has also published information about its feeder models and – following on from risk and reward guidance – its risk assessment tool.
The risk assessment tool tests the impact of various scenarios on companies’ returns and customer’s bills – used by Ofwat to understand how much risk companies have included in their business plans and how the risk is split between the company and its customers.
The feeder models give transparency on how data flows from the business plan data tables, through the feeder models into the financial model.
Ofwat expects the companies to use both the financial model and risk assessment tools, and to explain any variances between the results using the model and any models they have created themselves.
Click here to access a revised version of the model and release notes explaining all the changes that have been made since it was first published.
Comments on any of the models should be sent to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
UK-headquartered South Staffordshire Plc, the integrated services group operating within the UK critical infrastructure and essential services markets, has received a prestigious Royal Society for the Prevention of Accidents (RoSPA) Award for global health and safety excellence.
Balfour Beatty, the UK’s largest construction and infrastructure provider, has delivered exceptional environmental results on the Thames Estuary Asset Management 2100 (TEAM2100) framework, one of the nation’s most ambitious flood defence initiatives.
The Silvertown Tunnel’s pumping system is reducing the risk of flooding, delays and costly maintenance, while supporting the long-term resilience of London’s transport network, says Ian Ireland, large pumping projects programme manager, Xylem UK.
In a TV show that will explain the complex journey of the wastewater treatment process, Lakeside Equipment Corporation is set to feature in US Public Television’s All Access program with Andy Garcia.
Hear how United Utilities is accelerating its investment to reduce spills from storm overflows across the Northwest.
Find out more about the remarkable career opportunities on offer at WSP - scroll down to watch the inspirational video. 
What is to be done about the UK’s failing utilities? Listen to Professor Dieter Helm explore the options to tackle the UK’s failing utilities – Thames Water, the Royal Mail and Network Rail in particular.