Water regulator Ofwat has developed a financial model to help it assess the water companies' AMP6 business plans as part of the PR14 price review.
The three main purposes of the financial model are:
- To determine the wholesale price controls
- To calculate the revenues arising from the retail price controls; and
- To help assess financeability of the appointee.
Ofwat said the model has been built for and is intended to be primariliry used by Ofwat staff management. However, the regulator said it has published the model now to share its approach, and to enable companies to use it – if they wish – before they submit their business plans. However, the model is still subject to review and may be subject to change.
Ofwat has published the following three separate documents:
PR14 financial model user guide
The rule book explains the principles adopted in the financial model that Ofwat will use to conduct the risk-based review of business plans, to assess financeability at the appointee level of a company, to determine price controls for wholesale water and wastewater services and to determine the retail price controls.
Stakeholders are being invited to submit any comments on the financial model to This e-mail address is being protected from spambots. You need JavaScript enabled to view it , while water companies are being asked to contact their portfolio leads. The closing date for responses is 8 November – however, if any of the companies is unable to respond by the 8 November they can still submit details of any variances between the Ofwat model (version 1) and their own model with their business plans.
The regulator is proposing to issue an update of the model during December, following review and receipt of any comments on the model.
Enpure Ltd and Clean TeQ Water Ltd have announced a collaboration agreement to bring Clean TeQ Water's Moving Bed Ion Exchange-based nutrient removal technologies to water utilities across the UK.
Near-real-time microbial monitoring of wastewater discharge and bathing waters is now possible thanks to the BactoSense ID solution created by Swiss-based bNovate Technologies.
ABB has launched AquaMaster+™, a digital platform for smart water network management, designed to help water utilities monitor, analyze and manage their water networks, preventing pipeline water losses and optimizing operations.
Craig Nienaber, Business Development Manager for Safe Access Solutions (SAS) at HUBER Technology, explores why the company is seeing a growing level of interest in its safe access solutions for critical infrastructure providers, including their application in wastewater treatment assets.
Southern Water has released film and images showing what it’s like to walk inside Hampshire’s expanded Yew Hill underground reservoir for the very last time, before it gets filled with water.
Hear how Scottish Water has completed its £235 million Ayrshire Glasgow Resilience Project - customers across Greater Glasgow, Ayrshire and East Renfrewshire will now benefit from a more secure and resilient water supply.
Hear how United Utilities is accelerating its investment to reduce spills from storm overflows across the Northwest.