Water industry regulatorOfwat has launched a new consultation seeking views on its draft forward work programme for 2020-21.
Introducing the consultation, Rachel Fletcher, Ofwat Chief Executive said:
“We have set out our own strategy for the years ahead. The scale of change needed means Ofwat will not sit back and wait for the incentives to take effect. We are driving an ambitious agenda, and will use a wide range of tools to transform the companies’ performance; address the challenges of climate change and population growth; and drive the sector to deliver more value for society.”
The regulator’s three strategic goals for the years ahead are:
- transform company performance
- drive companies to address the long term challenges of climate change, population growth and changing customer expectations; and
- for water companies to provide greater value for customers, society and the environment
The programme sets out 12 ambitions Ofwat plans to achieve during the year. Key activities the regulator intends to carry out include:
- driving significant growth in the benefits the developer and business retail markets bring for customers and the environment
- using outcome tracking to assess its own effectiveness and improve its regulatory approach
- establishment of innovation fund and ready to run the first competition in 2021
- Regulators Alliance Progressing Infrastructure Development (RAPID) is fully established to secure resilient water supplies while keeping water affordable
- development of a consumer research function to help Ofwat understand how well the industry is meeting society’s expectations as well as shaping its priorities as a regulator
- scoping out out a data strategy, running data pilots and building data skills
Between April to June 2020 Ofwat plans to establish a permanent presence in Wales to strengthen its engagement with Welsh Government, Natural Resources Wales and other stakeholders. During October to December 2020 the regulator will also consult on initial proposals for key PR24 areas and building blocks, with possible additional specific consultations on key areas if appropriate.
It will also make a decision about further funding for the development of strategic solutions that address the water supply deficit in Hampshire, by assessing the initial concept design stage for the proposed solutions.
Ofwat has a total budget of £31.4 million for its work programme.
Deadline to submit comments on the proposed programme is Friday 21 February 2020 – click here to download the consultation document.
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