Ofwat has assigned each water company a senior member of its staff to be a primary point of contact on issues related to the upcoming price review (PR14) as part of its communication programme.
The regulator has recently published its final methodology for the price controls for the period 2015-2020 and has revealed its communication strategy with the water companies over the coming months.
Appointing a senior Ofwat staff member as a ‘Portfolio Lead’ for each water company will “improve the transparency of the price review process” and “help promote cultural change by creating a shared understanding of the objectives and the process at senior levels of both Ofwat and the companies”, according to the regulator. Assigning a ‘Portfolio Lead’ has been prompted by David Gray’s review of Ofwat and consumer representation in the water sector in 2011.
The Portfolio Leads will also manage engagement on price review matters with other key stakeholders involved in the process, such as the customer challenge groups (CCGs), the Environment Agency and the Drinking Water Inspectorate.
Until 30 September, Ofwat is inviting companies to raise any issues concerning the final methodology with their Portfolio Lead. Ofwat said it will also provide an opportunity for water company chief executives to discuss the price review directly with its Chief Regulation Officer, Sonia Brown.
Between 1 October 2013 and early 2014, Ofwat said it will only engage in “restricted and formal” communications with companies on PR14. During this time, water companies will be focused on preparing their business plans, due for submission on 2 December, while Ofwat will be assessing the quality of them.
If water companies do have any queries in this period, Ofwat said they can contact their Portfolio Leads but Ofwat will only respond if it “thinks it is appropriate.” Where it does respond, information will be shared with all companies, it added.
Ofwat is also inviting the companies to consider whether it would be helpful for them to present their plans to the regulator once they have been submitted.
The third phase of the engagement, beginning early 2014, will see Ofwat announce the outcome of its risk-based review of the business plans. It said it would provide more information about this phase of engagement in November.
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