Matthew Steele, Managing Director at Balfour Beatty Gas & Water has told the Competition & Markets Authority that it supports Anglian Water in its challenge that Ofwat’s determination does not provide a balanced funding framework and will not deliver best value for its customers.
Writing to Kip Meek, Chair of the special reference group of independent panel members appointed to review Ofwat’s 2019 Price Review decision, Matthew Steele said that Balfour Beatty has worked with Anglian Water on its @one Alliance for over fifteen years.
In his view Anglian Water’s track record demonstrates that it has been able to balance being as efficient as possible with leading service provision and its proposed AMP7 business plan is a continuation of this. The water company had balanced continued efficiencies in how it operates against achieving positive outcomes on issues such as the environment and leakage – however, he comments:
“Ofwat’s determination does not allow this to happen and places overwhelming downside risk on Anglian Water with limited upside opportunity. As a result, the full range of customer outcomes are likely to suffer.”
The letter explains that the@one Alliance model is fair and represents the future of infrastructure contracting; one focussed on customer outcomes and partnership working. The Balfour Beatty Gas and Water Chief also draws attention to the fact that the Alliance is a reference case study for ‘Project 13’, an industry-led response to past contractual models that fail not just clients and suppliers, but also the end users of infrastructure systems.
Matthew Steele’s letter concludes:
“Over the course of the Alliance it has been a leader in achieving frontier leading efficiencies whilst delivering positive outcomes for its customers and wider society. As such, we support Anglian Water in its challenge that Ofwat’s determination does not provide a balanced funding framework and will not deliver best value for its customers.”
The Balfour Beatty Gas and Water business division employs over 1800 people to maintain and construct some of the UK’s most critical utility infrastructure.
Click here to read the letter in full
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