Serviceability Methodologies

Reference: 12/RG/01/4
ISBN: 1 84057 620 0
Published Date: 27/02/2012

Stable serviceability has been Ofwat's requirement for capital maintenance expenditure set at periodic reviews for water companies in England and Wales. This report reviews the purpose of serviceability, how it has evolved over recent periodic reviews, and stakeholder views on its effectiveness. The report also looks at approaches adopted in other sectors and jurisdictions (both in UK and internationally) and it considers the impact of Ofwat's emerging approach to future regulation. Taking account of the review's findings, the report recommends refocusing serviceability from asset capability to service risk outcomes. It makes proposals for a self-assessment framework intended to give companies greater ownership of serviceability and freedom to define indicators, including indicators of service risk, network capacity, and critical asset condition. A role for stakeholder groups in challenging serviceability outcomes is proposed and a continuing need for assurance of serviceability is identified.

Price: £16  

Customer Involvement in Price Setting

Reference: 11/RG/01/3
ISBN: 1 84057 600 6
Published Date: 06/07/2011

This report is from the UKWIR study on customer involvement in the water industry's price setting process. Its purpose is to identify and develop ways of bringing customer input to bear on future decisions about water and sewerage bills and associated quality of service.
The report begins with a summary of stakeholders' perspectives on customer involvement in Ofwat's 2009 periodic review and their thoughts on how best to build on that experience. It then sets out a menu of eight possible innovations which could, but not necesarily should, be brought in to the process for the 2014 review. These options are subsequently organised into four distinct models which are subjected to a high-level evaluation.

Price: £14  

Review of Serviceability Indicators

Reference: 06/RG/01/2
ISBN: 1 84057 416 X
Published Date: 23/08/2006

This project reviewed the use of various customer service, environmental performance, public health compliance and asset performance measures, collectively referred to as serviceability indicators. The report brings clarity to the serviceability assessment process, whereby Ofwat assess companies' capital maintenance requirements at Periodic Review and monitor and influence the delivery of capital programmes, between reviews. A clear definition of 'stable' serviceability is provided, and recommendations are made for the rationalisation the existing 'basket' of indicators used by Ofwat. The need for companies to be proactive in developing their own company specific indicators, to complement those required by the regulator, is highlighted.

Price: £21