Water sector regulator Ofwat has launched an early engagement market sounding exercise to judge interest from potential suppliers to select its Delivery Partner for the 2019 Price Review.
Ofwat will be tendering for a Delivery Partner arrangement from April 2018 for a period of 18 months to work with it to develop and deliver an efficient solution for PR19.
Describing the Price Review process, which will conclude in December 2019 with the publication of Final Determinations, Ofwat said the work required to carry out for a price review requires a peak of resource within Ofwat, both in terms of absolute numbers and specific skillsets.
A range of options to meet the additional demand is currently under consideration, including fixed term staff, secondments and a Delivery Partner.
The regulator said it is using the opportunity to fundamentally think about its requirements, stimulate innovation and explore alternative methods of delivery to enable it to deliver the PR19 process effectively and within the set timeframe.
Ofwat currently has around 200 staff working across offices in Central Birmingham and London, many of whom will be directly or indirectly involved in delivering PR19.
For PR14, the previous 2014 Price Review, Ofwat appointed PwC as its Delivery Partner. At the time the value of the delivery partner contract to support the price review was put at up to £6.45 million, with an additional maximum possible incentive payment of £701,000.
Ofwat said working with a Delivery Partner in PR14 had enabled it to draw on additional resources quickly and effectively.
“Taking lessons learned from the price review in 2014, we are looking for external support to provide innovation and continued benefits. To deliver the price review we will need a range of skills which will be made up by internal staff and external suppliers, including a Delivery Partner or a consortia Delivery Partner arrangement.”
Ofwat is now providing advance notice and launching a period of market sounding exercise in advance of the formal tendering process for a delivery partner for PR19. The market sounding will enable the regulator to refine and develop an outcome based requirement and to develop a detailed specification for work required which will be informed by the market engagement responses.
Ofwat said it anticipates a need for between 10 and 20 full time equivalents professionals across the course of PR19.
Deadline for responses to the initial market sounding exercise is 26 May 2017.
Click here to hear Ofwat Chief Executive, Cathryn Ross, share her view on the themes for the next price review via the Waterbriefing Watch channel.
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