Ofwat has today published its rating of the quality of information and assurance water companies provide customers about their performance – the regulator has expressed concerns over how Yorkshire Water and Southern Water assure their data.

The regulator’s annual assessment of water companies’ information quality is intended to challenge companies to publish information that can be trusted by their customers.

 Three water companies have moved to the highest category. Four companies have moved to a lower category.

South East Water, Severn Trent Water and United Utilities have all moved up to the self-assurance category. The companies met expectations in most, if not all, of Ofwat’s assessments, exceeding  expectations and demonstrating good practice in a number of areas.

In contrast, South West Water and Affinity Water have moved down to the targeted category. Ofwat said the companies did not consistently meet the high standards expected for companies in the self-assurance category, which had led to a reduction in the trust and confidence stakeholders can have in their information. The companies will now be subject to targeted prescriptive assurance requirements, to ensure that the arrangements they put in place are sufficient to protect customers.

Ofwat has also moved Yorkshire Water and Southern Water to the prescribed assurance category, demoting them because of concerns with how they assure their data. According to the regulator, in some areas the companies did not provide sufficient confidence and assurance about their ability to deliver, monitor and report performance, leading to a reduction in trust and confidence. They join Bristol Water and Dee Valley Water who remain in the prescribed category.

Ofwat will now prescribe assurance requirements for all the information it has asked them to publish. In addition to meeting the requirements of self-assurance and targeted categories, companies in the prescribed category are required to publish their assurance plans for all information in advance of reporting.

Ofwat will take account of the quality of companies’ information in its next regulatory Price Review PR19. Concluding in 2019, PR19 will review monopoly companies’ revenues and pricing policies beyond 2020. Companies that want to secure ‘enhanced’ status, and benefit from a streamlined process, will need to demonstrate high quality information and assurance.  Ofwat said all targeted and prescribed companies now have the opportunity to improve their status before this process begins.

Keith Mason, Senior Director at Ofwat, said:

“We expect companies to be transparent and have processes in place to ensure their information can be trusted. The ratings we have published today enable customers to compare their water company with others, which is important to help drive improvement.”

“We assess large water companies each year on the quality of their information. The top performers will have less involvement from us. Where we’re concerned by the quality of this information, we will intervene to make sure they improve.”

Click here to download Ofwat's Company monitoring framework - 2016 asssessment