Cost Assessments

Water company benchmarking

Reference: 16/RG/07/38
ISBN: 1 84057 808 4
Published Date: 10/02/2016

This report outlines a methodology for benchmarking performance in the UK water sector. The methodology addresses legitimate concerns over the application of benchmarking in the current regulatory climate, but also enables the benefits of benchmarking to be realised. In addition, the report sets out a set of 50 key performance indicators (KPIs) (broken into 23 ‘main’ customer focused KPIs and 27 ‘secondary’ more technical KPIs) which could be used to benchmark performance. If applied, the methodology and the KPIs could create a more open and transparent sector, leading to improved regulation of companies, drive performance improvements and ultimately, better service to customers.

Price: £30  

The future approach to price-setting in the wholesale value chain

Reference: 15/RG/07/37
ISBN: 1 84057 801 7
Published Date: 08/12/2015

The passing of the Water Act 2014 and Ofwat’s Water 2020 programme mean that the approach to pricing in the wholesale water and sewerage value chains needs to be re-considered. Separate price controls, access charges and price signals might be considered as tools to promote contestable markets and more effectively regulate monopoly activities. Allocation of the Regulatory Capital Value (RCV) across the value chain might also be considered. In this context, UKWIR has commissioned FTI Consulting LLP to consider options which might be available for upstream pricing in the future and to undertake a preliminary assessment of those options. This report contributes to the industry’s thinking on these issues by presenting a range of evidence, drawing on theory, practical experience in other sectors and applied analysis of what these reforms might mean for the water industry.

To download a free copy of this report, please click here.

Price: £30  

Wholesale and Household Retail Charging Principles - Volume 1

Reference: 15/RG/07/36
ISBN: 184057 770 3
Published Date: 06/07/2015

The aim of this project has been to understand the evolving regulatory requirements for wholesale and household retail charging policies. The project has developed a framework to aid companies in the development and refinement of their charging policies.  The focus of the project is on wholesale and retail household charges in England and Wales, though the principles and steps that underpin the framework should be applicable to all aspects of charging and could also be applied in Scotland.

The project report is presented in three volumes: Volume 1 outlines the project methodology and provides a summary of the proposed framework. Volume 2 presents the framework and guidance in full. Volume 3 details the literature review, stakeholder engagement and analysis of charging requirements that informed the development of the framework and guidance.

Price: £48