The Consumer Council for Water (CCW) is adopting a more hands-off approach to regulation at a time of Ofwat’s increased focus on stakeholder engagement.
In its Forward Work Programme for England and Wales 2012-13 to 2014-15, published last week, CCW explains how it is changing to a more risk-based approach to regulation in order to reduce running costs and in response to “changes in the wider regulatory environment.”
The new, more relaxed approach interestingly coincides with Ofwat advocating an increased stakeholder engagement in the development of water companies’ business plans for the upcoming 2015-2020 investment programme.
The CCW intends to focus more on water companies with unsatisfied customers and direct less scrutiny on companies that appear to be meeting customers’ needs.
The programme states: “We will analyse company performance and target our attention towards those companies that are not meeting customers’ expectations.”
The more targeted, risk-based approach will include cost-cutting measures such as reducing the number of committee members, only asking for routine data if cause for concern is present, and holding fewer meetings with the water companies.
The CCW has promised that reducing costs will not affect the quality of its customer representation service. The programme states:
“We will work closely with water companies to make sure the outcomes of their decisions reflect what customers need and want, while still meeting their statutory requirements.”
CCW will decentralise their activities concerning customer issues to local Customer Challenge Groups and through the Wales Price Review 14 Forum. It will also use the results of consumer research, customer complaints and evidence from Ofwat’s Service Incentive Mechanism to build a picture of customers’ concerns.
The CCW is relaxing its inspection activities at a time when Ofwat is driving towards increased stakeholder engagement on the water companies’ business plans. Ofwat intends to work closely with CCW to identify customer issues but whether the CCW will be able to fulfil its duties amid its cost-cutting processes remains to be seen.
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