Ofwat has launched a new consultation on proposed changes to the measures of customer experience performance commitments at PR24.
Launching the consultation, the regulator said that water companies in England and Wales need to improve the customer service they provide to residential customers, developers and businesses.
Via the 2024 price review (PR24), Ofwat is driving improved outcomes by linking the returns of investors to the services they provide to customers using the outcomes framework.
Companies that perform relatively well can recover greater revenue from their customers, while companies that fall short are required to return funding to customers through lower bills.
The consultation document sets out Ofwat’s proposals for the high-level design of the measures of experience at the 2024 price review (PR24). This includes the following mechanisms, which were introduced at PR19:
- the customer measure of experience (C-MeX);
- the developer services measure of experience (D-MeX); and
- the business customer experience in Wales performance commitment.
While not in scope of this consultation, Ofwat will also provide an update on the business and retailer customer measure of experience (BR-MeX), which is new for PR24.
In parallel to the review of the high-level design of the measures of experience and their incentives at PR24, Ofwat has also started reviewing detailed implementation issues. The water sector regulator will continue to consider these survey and sampling issues, working with water companies and other stakeholders, during the determinations phase of PR24.
Following on from the consultation, Ofwat will then set out its policy proposals in the PR24 draft determinations, due to be published in May 2024 for consultation, ahead of the PR24 final determinations in December 2024. The final policy decisions will take effect from April 2025.
Deadline to submit responses to the consultation is 26 September 2023 - click here to download the consultation paper
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