Regulation

Best Practice for Sediment Management for Reservoirs and River Impoundments

Ref: 19/RG/06/5            Price: £10

ISBN: 978-1-84057-881-2

Sediment management is important to water companies for operational reasons, but also to balance ecological concerns and allow regulatory compliance around these issues. Impounding structures, including those associated with water company activities, commonly alter sediment supply dynamics, which can lead to degradation of operational efficiency of assets. Sediment is a fundamental component of natural fluvial processes and impacts to sediment dynamics can have significant negative consequences for the geomorphology and ecology of a river and its anthropogenic uses.

The research has increased understanding of sediment management issues faced by the water industry and reviewed current UK guidance and regulations with respect to sediment management. Examples of good practice sediment management at impounding structures have been collated into  a comprehensive sediment management manual which consists of step-by-step guidance and 50 evidence sheets covering diverse topics from sourcing sediment for re-introduction to dealing with unforeseen problems.

Resilience – performance measures, costs and stakeholder communication

Ref: 17/RG/06/4            Price: £10

ISBN: 1 84057 833 5

This report is a further step in the evolution of work undertaken by the water industry related to the concept of resilience. The work focusses on the service provided by the water supply and wastewater sectors and how aspects of resilience of that service could feed into Periodic Review 2019. The work also draws on the parallel work of the Water and Wastewater Resilience Action Group (WWRAG).

The report desribes different ways of looking at resilience and how resilience can be expressed in terms of Outcomes and so contributes to Ofwat's consideration of possible resilience metrics that could be used to set Performance Commitments and Outcome Delivery Incentives.

The report gives a structured and practical approach to the development of resilience metrics appropriate to a range of business purposes and technical types, with specific reference to stakeholder communication. Candidate metrics for each of the two water sector services are listed.

Resilience: Making a Business Case for PR14

Ref: 13/RG/06/3            Price: £10

ISBN: 1 84057 675 8

Resilience in the water industry can be defined as the ability of an asset or asset system to continue to withstand or to recover from the effects of an exceptional event such that acceptable service levels are maintained and/or restored quickly. This project aimed to supprt water companies in developing a business case for resilience at PR14 and beyond.
An extensive literature review was carried out. Natural and man-made hazards that could result in extreme risks were categorised and quantified and used to develop guidance covering: Resilience risk screening and assessment; Detailed resilience assessment; Implementation of resilience solutions.
The guidance adopts an iterative, risk-based approach to allow consistency with water company planning methodology and compliance with regulatory requirements. It includes advice on consultation with customers and stakeholders and on how resilience should be discussed.
This main report incorporates the full project report, full detail of the good practice approach and appendices including the literature review and case studies.
A summary report (13/RG/06/2) is available to provide a quick guide to the essential steps that companies might follow in developing resililence planning.

Resilience Planning: Good Practice Guide - Summary Report

Ref: 13/RG/06/2            Price: £10

ISBN: 1 84057 674 X

Resilience in the water industry can be defined as the ability of an asset or asset system to continue to withstand or to recover from the effects of an exceptional event such that acceptable service levels are maintained and/or restored quickly.
Natural and man-made hazards that could result in extreme risks were categorised and quantified in the main project report (13/RG/06/3). They were used to develop guidance covering: Resilience risk screening and assessment; Detailed resilience assessment; Implementation of resilience solutions.
The guidance is adaptable to existing water company planning methodology and is compliant with current regulatory requirements. It includes advice on consultation with customers and stakeholders and on how resilience issues should be discussed.
This summary report provides a quick guide to the essential steps that companies might follow in developing their own approach to resilience planning.

Understanding the Impact of Shorter Life Assets on the Longer Term Maintenance Requirements of the UK Water Industry

Ref: 12/RG/06/1            Price: £10

ISBN: 1 84057 635 9

Water industry capital maintenance expenditure has more than doubled in real terms in the 20 years since privatisiation. The report explores the reasons for increasing non-infrastructure capital maintenance requirements including growth in the asset base and an increase in the proportion of shorter life assets resulting in more frequent replacement cycles. The report also sets out to quantify at industry level historical expenditure by asset type and asset life category and then to forecast the impact of this historical investment on future maintenance requirements. The report shows that due to the nature of enhancement expenditure since privatisiation the trend of increasing non-infrastructure capital maintenance requirements is expected to continue in future. Capital maintenance requirements are not expected to stabilise until a significant period after enhancement expenditure is ceased. Capital maintenance expenditure is also compared with current cost depreciation into the long term, helping explain the differnces between the two.
For companies wishing to repeat the analysis at the company level the report proposes three different methodologies that could be implemented using company data. The outputs of the company methodologies may help inform long term strategy, validate water company capital maintenance plans and help explain why future maintenance requirements are different from historical requirements. However, the limitations of the methodologies need to be recognised and they are not intended as a replacement for detailed application of the Capital Maintenance Planning Common Framework.

Future Asset Planning – Scenarios, frameworks and measures: Final report

Ref: 22/RG/05/58            Price: £10

ISBN: 978-1-84057-954-3

UKWIR’s Big Question 08 asked “How do we continue to create value through Asset Management decision making? This project sought to answer this through merging three sub-projects delivered by an international consortium of industry and academic partners to define a Future Asset Planning framework. The framework addressed: Asset Health, Scenario Planning and Value Frameworks.

In a significant piece of work led by Atkins and supported by Ovarro, University of Manchester and Asset Resolutions, the project provided:

• a set of Value Measures and methods to build Value Frameworks in order to address true sustainability by engaging with diverse stakeholder groups to understand what is of value to them;
• a more structured approach to Asset Health addressing traditional assets but also considering the increased use of digital and natural asset solutions;
• an industry wide approach to considering scenario uncertainties and a set of development pathways to lead to adaptive planning approaches.

Understanding Asset Risk

Ref: 21/RG/05/57            Price: £10

ISBN: 978-1-84057-928-4

This project forms part of UKWIR’s Asset Management Big Question of ‘How to continue creating positive value through Asset Management decision making?’. The project focuses on the objective of developing an overall idealised design of a risk framework which considers the elements of asset risk, the system the assets operate within and the system of system risk.

Using principles of co-creation and iterative solution generation, the project used workshops, desk research, and interviews to develop the idealised asset risk framework or ‘vision for the future’. This involved investigating risk management approaches within the UK water sector, internationally as well as comparing against various other sectors.

Through this, the Idealised Asset Risk Framework was developed to provide a diagrammatic tool which organisations can use to describe a system of interest, explore the risks and risk dependencies across/between asset groups, and therefore structure risk analysis using both existing and in-development approaches/techniques.

Intelligent Assets - Condition and Performance Monitoring Techniques

Ref: 18/RG/05/49            Price: £10

ISBN: 1 84057 850 5

Monitoring of critical assets can provide an early warning of possible failure, allowing early intervention and avoiding or mitigating impacts on customer service. Various ‘Condition and Performance Monitoring Techniques’ (CPMT) exist for this purpose, such as vibration or acoustics measurement, as well as analytical techniques (e.g. processing data to identify trends or detect anomalies). There is a need within the water industry to better understand the CPMT options available and their potential benefits.

Alternative options for CPMT were identified and assessed through a review of published literature. Water companies and CPMT supplier companies were also surveyed on their experiences of CPMT, in order to understand the usage/availability of various types of CPMT, and the success of CPMT implementations.

A framework for CPMT selection was devised based on identifying priority assets where CPMT would be most likely to be beneficial, then shortlisting potential techniques for these assets, and finally evaluating the costs and benefits. The costs and benefits section of the framework is illustrated via generic cost-benefit assessments for a range of common water industry asset types, provided in spreadsheet format on a CD accompanying the project report.

The project included a number of studies to quantify the benefits of CPMT. Data suggest that in many cases there are indeed clear benefits (more than justifying the cost of the CPMT) but the conclusions that could be drawn were restricted by data quality and availability.

One of the outputs from this project was a generic cost-benefit assessment spreadsheet, which provides cost-benefit assessment calculations and realistic quantities relating to asset deterioration rates, asset failure/repair costs etc, for ten commonly used water industry asset types. This spreadsheet might be useful in gauging the potential benefits of CPMT; users can also refine the analysis inputs in order to better represent particular assets at their company.

This spreadsheet is included on the CD. Further explanation and guidance is included within the spreadsheet itself.

Implementation of the Eels Regulations

Ref: 16/RG/05/45            Price: £10

ISBN: 1 84057 809 2

An independent review and critique of the current regulatory approach to implementation of the Eels Regulations for the UK water industry. The project report provides a review of existing guidance, policy and legislative obligations for fish protection at intakes and barriers to migration. The approach to identifying impacts, benefits, costs and risks are critiqued and an overview provided of guidelines for best practice solutions and alternative measures. Specific detail is provided on the Cost Benefit Analysis (CBA) methodology, in particular a critique of the current approach and exploration of the possibility of introducing a more risk-based assessment into the methodology. Reviews of screening and fish passage solutions, along with operator experience are provided as appendixes to the report. Further appendices include insight from the power sector, overviews of fish protection measures and implementation of the Eels Regulations in other countries (USA, Germany and The Netherlands) and summary documents of discussions with the Environment Agency.

Framework for Expenditure Decision Making: Making the Case for Expenditure

Ref: 16/RG/05/46            Price: £10

ISBN: 1 84057 811 4

This report introduces a new Making the Case methodology designed to align with the UKWIR Framework for Expenditure Decision Making (FEDM) and support the production of robust expenditure cases.
The methodology has been developed through consultation with representatives of water companies, regulators, and customer bodies. It is intended that it will not only be applicable to future regulatory submissions but also in proving the case for expenditure to internal company stakeholders between price reviews, becoming part of ‘business as usual’ activities.
A set of guidance questions was designed, and five example expenditure cases submitted as part of the PR14 regulatory process were used to test the guidance. These five case studies have been written by company representatives, and provide an analysis of both the strengths and weaknesses of those cases and commentary on alignment with the UKWIR Framework for Expenditure Decision-Making (2014).

Framework for Expenditure Decision Making: Self-assessment Methodology

Ref: 15/RG/05/44            Price: £10

ISBN: 1 84057 790 8

This report outlines a methodology to allow UK water companies to undertake self-assessment of maturity against the UKWIR Framework for Expenditure Decision-making (2014), and incorporates an Excel-based self-assessment tool. The structure of the tool mirrors that of the FEDM, and provides contextual information and questions to allow effective assessment against each of the Level 2 Framework steps. Users are able to assess capability at Company level, by Price Control or by asset type categories. Following self-assessment, scores and radar plots can be reported graphically.

The methodology and tool also provide an option to map scores to company specific Outcomes and Performance Commitments, and highlight overlap between the FEDM steps and ISO 55000 clauses.

Framework for Expenditure Decision Making: Development of Service Forecasting Approaches

Ref: 15/RG/05/43            Price: £10

ISBN: 1 84057 777 0

The purpose of this research was to provide expenditure planning practitioners with approaches and tools for service forecasting, which present a range of practicable options and allow choices in the degree of sophistication they could employ. The approaches reported cover the full width of commonly used Service Measures, including mandatory measures such as water quality and supply/demand measures and has particular relevance to Step D of the Framework for Expenditure Decision Making Understand and Forecast Risk. This report and an accompanying spreadsheet tool (including a web version of the tool for on-line users of the Framework) provides Practitioner Guidance for service forecasting approach selection.

This report presents commentary on a variety of techniques and provides guidance on their role and use within expenditure planning.

Leading Indicators Linking to Performance Commitments

Ref: 15/RG/05/42            Price: £10

ISBN: 184057 774 6

The regulatory framework in England and Wales requires companies to determine desired outcomes in consultation with their customers. The achievement of these outcomes is measured by Performance Commitments (PCs) such as supply interruptions and water quality customer contacts.

A framework has been developed for the systematic identification of indicators associated with asset and service performance, with particular focus on ˜leading" indicators, to provide advanced warning of potential PC success or failure.

The framework was trialled through application to a number of PCs commonly adopted by UKWIR members at PR14.

A Performance Commitment Dashboard was developed for use in monitoring the status of PCs in terms of actual performance to date and risk to future performance as measured by the indicators identified through application of the framework.

The use of the framework and dashboard will provide companies with improved understanding of their risk position with regard to the achievement of Performance Commitments, with the aim of allowing timely corrective action to be taken.

Investigation into the Feasibility of Adopting a Universal Coupling Mechanism for Submersible Pumps

Ref: 15/RG/05/41            Price: £10

ISBN: 184057 759 2

The work carried out was aimed at assessing the feasibility of developing a universal auto coupling system (ACS) for submersible pumps as well as producing a design specification and some outline concepts.

It was found that a universal ACS is not currently possible as not all pump manufacturers provide a standard PN16 flange connection to the bracket. It could be achieved by only standardising the duckfoot and guiderails used, leaving the design of the claw attachment backet to the individual pump manufacturers. The required duckfoot height is important to the function of the pump and the clearance varies between suppliers. The impact that a standardised duckfoot height would have on the performance of specific pumps would need to be assessed.

In order to move the project forward it is recommended that WaSCs meet with pump manufacturers to overcome the issues encountered.

Nationally Agreed Reliability Data and Methodology for Sewage Treatment Works - Vol I Overview and Findings

Ref: 03/RG/05/5            Price: £10

ISBN: 

In adopting the Common Framework approach, members of UKWIR identified the need to collaborate in the pooling of asset reliability data. This research project reviewed information currently held by companies on equipment failures and reliability for sewage treatment works. The research was limited to pumps and screens and examined the companies? ability to share the requisite information. Differences in the information currently held between companies, in terms of structure and quality of data, restricts the scope for immediate benefits to be gained from information sharing. To encourage a co-operative approach, this report provides a methodology with extensive guidelines for the consistent assimilation of equipment and reliability information. The report also describes the development of a Water Industry Database of Equipment Reliability, WIDER, which provides a suitable repository for this structured data, readily accessible through the world wide web. Sold as a set with Volume II (03/RG/05/6) £300

Sustainable Drainage Systems (SuDS) Research Roadmap

Ref: 14/RG/05/39            Price: £10

ISBN: 1 84057 717 7

This report provides a Sustainable Drainage Systems (SuDS) research roadmap, together with a report on the 'state of the nation' that gives an overview of SuDS delivery and identifies the research that should be addressed in relation to SuDS with a focus on requirements and opportunities for sewerage undertakers. The project and report are based on consultation with those involved in SuDS delivery and research, as well as an extensive literature review.
While sustainable drainage is being dellivered in the UK, there is no doubt that additional sound science, guidance, tools, demonstrations and dissemination would help improve the confidence and competence of those dellivering and evaluating schemes. This report (and associated outputs) identifies gaps and recommends research and initiatives to help mainstream SuDS.
The report will be beneficial to sewerage undertakers (and potentially their partners) as well as those commissioning and undertaking research into SuDS.

Groundwater Asset Maintenance Requirements; Development of a UK Water Industry Standard Approach

Ref: 12/RG/05/35            Price: £10

ISBN: 1 84057 707 X

The UK water industry relies heavily on ageing groundwater assets. An approach to maintenance planning is presented enabling water companies to develop more effective investment plans and achieve lower whole life costs, reduced serviceability risk and better security of supply.

This research pools experiences of different types of aquifers and failure modes including loss of reliable yield due to excessive drawdown, bacteriological failure, sand pumping, borehole collapse, turbidity failure and outage due to iron and/or managnese or other water quality parameters.

The resulting screening tool is based on a Generic Asset Life which is then adjusted to become a Modified Asset Life depending on actual performance and factors predisposing towards failure.  Deterioration curves with or without rehabilitation may be estimated from case histories or site specific data. The forward planning tool, taking account of asset criticality, allows prioritisation of assets for investigation and rehabilitation or replacement.

Wastewater Treatment Works for Adoption

Ref: 13/RG/05/38            Price: £10

ISBN: 1 84057 696 0

Current planning guidance and the policy of environmental regulators strongly promote the use of mains drainage for new developments. Where it is not practicable to connect to existing sewer systems, legislation provides the legal framework under which the adoption of private wastewater treatment works (WwTW) may take place.

The principle objective of this project was to produce, for the first time, a nationally agreed document that sets the standards for WwTWs to be adopted by the Sewerage Undertaker (Water Companies).

The document provides the Undertaker's minimum essential requirements on, where present, the inlet manhole, wastewater treatment plant, flow meter chamber, outlet sampling chamber and kiosk housing low voltaege switchgear and control gear assembly and associated control and telemetry equipment.

The document is a useful guide for Developers and/or Owners of WwTWs on the conditions under which the Undertaker will adopt a Works.

Intervention Options: When to Repair, Refurbish or Replace Non-Infrastructure Assets - Volume 1: Risk Modelling and Costing Guidance

Ref: 12/RG/05/32            Price: £10

ISBN: 1 84057 679 0

The objectives of this research project were twofold. First to develop guidance notes which cover the development of a risk modelling framework, deterioration modelling and the costing of non-infrastructure assets; the resultant modelling framework was to be suitable for assessing interventions options, namely repairs, refurbishments and replacements. Second, to provide examples that demonstrate these guidance notes to practitioners.

The project reports provide the following:

- Development of a non-infrastructure risk modelling framework, including the development of the set of interventions, intervention impact analysis, development of deterioration rates, and costing of interventions (Volume 1: 12/RG/05/32)
- A Literature Review which highlights the methods and approaches of other sectors: water and other sectors, UK and internationally. A number of case studies are provided in greater detail in the associated annex included with Volume 2 (12/RG/05/33)
- Overview of the deterioriation and costing practical examples, including the developed Excel modelling tools for analysing the results (Volume 3: 12/RG/05/34)

These 3 volumes are sold as a set for £60.

Making a Case for Capital Maintenance

Ref: 13/RG/05/36            Price: £10

ISBN: 1 84057 673 1

Existing guidance on making a case for capital maintenance exists in Stage C of the Capital Maintenance Planning: A Common Framework (CMPCF), which was first published in 2005, and used by many companies to support their PR04 and PR09 submissions. Given issues that arose  at PR09, it was decided that Stage C of the CMPCF needed to be reviewed and a better framework developed for making a case for capital maintenance. The review is the subject of this report.

Incentives to Optimise Water Networks

Ref: 13/RG/05/37            Price: £10

ISBN: 1 84057 666 9

In 2012, Ofwat published proposals for a network management incentive for companies to reveal network management information to support efficient resource use and development of competition.
A review of this incentive concluded that further industry dialogue is required to achieve clarity on its aims and objectives. The need for an incentive to encourage information provision is considered low given other existing and proposed regulatory mechanisms. However, greater collaborative working and information sharing is recommended to enhance efficient use of resources and network capacity.
Competition is the area where information provision requirements are uncertain and where potential barriers exist. Development of any regulatory mechanisms should be tied to the timescales for competition. An evolutionary approach is recommended, including piloting of different approaches. In the short-term, collaborative working is likely to be most productive. A financial incentive may ultimately be required, depending on the scale and costs of the information requirements.

The Common Framework and Justifying Investment in 'Management and General' Asset Types

Ref: 11/RG/05/31            Price: £10

ISBN: 1 84057 598 0

Almost all UK water companies applied the Capital Maintenance Planning Common Framework to operational assets at the 2009 Price Review, but application to so-called 'Management & General' (M&G) assets has been less comprehensive.
From a review of current practice in M&G investment and following consultation with Ofwat, a set of nine methodologies has been identified together with a number of general principles. These are described in the report, accompanied by guidance and worked examples. The methodologies and guidance form a framework which companies should take into consideration when planning capital maintenance expenditure for M&G assets and preparing business plans at the next Price Review.
The asset groups considered were: IT; telemetry and SCADA; accommodation; fleet; Health & Safety and security, and; recreation.

The Asset Inventory: A Simplified Alternative Approach

Ref: 11/RG/05/30            Price: £10

ISBN: 1 84057 597 2

Asset inventories have been submitted to Ofwat by water companies in England and Wales in support of company Business Plans for the last four Periodic Reviews. The PR09 asset inventory included information on the quantity, condition and value of the asset base. Companies have deployed significant resources for completing the asset inventory in the past. The research sought to identify Ofwat's requirements for the asset inventory in the future, taking account of the emerging future regulatory framework, and to propose a simplified alternative approach that would meet Ofwat's requirements at future Periodic Reviews. The project developed recommendations that included: rationalising the asset stock, taking account of Owat's requirements for accounting separation; focusing condition grading on asset types for which Ofwat's serviceability outputs are not effective at monitoring maintenance; and moving towards greater use of indexation of asset values, rather than the requirement for costly periodic full asset revaluations.

National Sewers and Water Mains Failure Database

Ref: 08/RG/05/26            Price: £10

ISBN: 1 84057 522 0

This report describes the development of a common infrastructure to support a National Sewers Failure Database and a National Water Mains Failure Database accessible to UKWIR members via a dedicated website. The water mains failure database described in Reports 03/RG/05/7 and 06/RG/05/16 has been updated and migrated to a new platform, providing greater flexibility of reporting and analysis. A new compilation tool is described which enables water companies to validate and upload data in a common format. An overview of the features of the Database is given, with examples of typical reports that can be generated. The report is accompanied by a CD-ROM which includes the Protocol documents that define the data requirements for the database. NB THE DATABASE IS AVAILABLE ONLY TO UKWIR SUBSCRIBERS VIA A SECURE WEB SERVICE.

Tool for Risk Management of Water Utility Assets

Ref: 08/RG/05/25            Price: £10

ISBN: 1 84057 502 6

The project has developed a methodology to enable Global Water Research Coalition (GWRC) members to apply risk management techniques to the management of assets for service provision, in both water supply and wastewater treatment.
A literature review identified the current practice and level of application of risk-based planning techniques in the GWRC member states, covering water and other asset management sectors. A stepped approach was then elaborated in guidelines to help water utilities identify risks and potential mitigation options in a consistent manner across all areas of the utility's asset management activity. A spreadsheet tool was produced to exemplify these guidelines.
The methodology is designed for application to different types of assets under a wide range of risk scenarios and within the differing cultures and stakeholder environments of the member countries. It will help water utilities to manage risks at both a strategic level and in day-to-day asset management, taking into account the regulatory regime within which the utilities operate, the level of service that is currently provided, the typical expenditure and means of finance, and the rate of deterioration of the asset base. Factors such as design; operation and maintenance risks; costs and benefits, sufficiency of supply; handling high consequence-low probability risks; corporate and reputational impacts; and the effect of uncertainty in forecasting, can be accommodated.

Capital Maintenance Planning: Asset Deterioration Database (WIDER) - Volume I: Project Report

Ref: 08/RG/05/23            Price: £10

ISBN: 1 84057 505 0

The third phase of the Water Industry Database of Equipment Reliability (WIDER) project comprised a three year implementation and delivery stage, building on earlier phases. Volume I presents an outline record of the activities undertaken, outputs achieved and the benefits to be gained from a co-operative approach, and makes recommendations for improving company data and systems.
Volume I is sold as a set with Volume II (08/RG/05/24) for £300.
Please note that the WIDER database is no longer available as a live web service.

Review of Water Mains Serviceability Indicators and Condition Grading: Volume II - Mains Condition Grading

Ref: 08/RG/05/22            Price: £10

ISBN: 1 84057480 1

This report presents the results of a review of existing and potential approaches to condition grading of water mains. The work carried out involved a review of current practice by Water Companies and other utility industries, consultation with UK water industry regulators and trials and subsequent analysis of a proposed revised approach.

A number of recommendations are made including the adoption of observed burst rate as the single basis for mains condition grade. An approach to calculating burst rate based on the formulation of mains cohorts is proposed. Examples of the application of the proposed approach are provided.

Review of Water Mains Serviceability Indicators and Condition Grading: Volume I -  Serviceability Indicators

Ref: 07/RG/05/21            Price: £10

ISBN: 1 84057 466 6

This report presents the results of a review of potential new serviceability measures for focussing of investment in water distribution assets. The work carried out involved a review of current practice by water companies and other UK utility industries, consultation with UK water industry regulators and trials and subsequent analysis of selected new measures.

Three indicators were chosen to be the subject of industry trials: property-minutes of interruption; traffic disruption; and customer complaints. A further trial was conducted in relation to spatial methodologies.

A number of recommendations are made based on the outcome of the trials including that companies should carry out further testing of the property-minutes of interruption indicator in order to confirm the practicability of application and a list provided of indicators recommended for companies' internal use.

Distribution: Development of National Deterioration Models

Ref: 07/RG/05/20            Price: £10

ISBN: 1 84057 458 5

A set of burst rate models has been developed for use by the UK water industry.
Existing research in mains deterioration modelling was reviewed and the availability of suitable data within the UK water industry assessed. Data sets were received from the UKWIR National Mains Failure Database contractors and from three UK water companies. Third-party data on soil type, land use and weather were incorporated.
These data sets were used to assess the performance of six model types. Twenty-four calibrated models covering four data sets and six material types are described. A Model Calibration Toolbox is provided that allows company-specific data to be imported and used either to re-calibrate, or for comparison with (validation of) the models.
Conclusions are provided regarding the best performing model types, and statistically significant explanatory variables. Recommendations are provided for use of the models and toolbox, and for future deterioration modelling research.

Asset Management Planning Assessment Process - A Methodology for Self-Assessment, Volume I: Project Report

Ref: 07/RG/05/18            Price: £10

ISBN: 1 84057 457 7

This project provides a methodology  to facilitate self-assessment of water company approaches to asset management planning. The assessment process is founded on the principles of the Capital Maintenance Planning Common Framework, but extends beyond it, also covering leadership, management, people, processes, systems and reporting. The assessment process is also expandable beyond base maintenance into other policy areas and may be developed further for benchmarking approaches to asset management planning as part of price setting. This report - Volume I - comprises the project report which describes the development and testing of the methodology and tool. Volume II comprises the methodology, scoring guidelines and Excel spreadsheet tool.
Sold as a set with 07/RG/05/19 for £150

Deterioration Models and Tools for Non-Infrastructure Assets

Ref: 07/RG/05/17            Price: £10

ISBN: 1 84057 436 4

This project developed deterioration models for above-ground assets which will allow companies to input their own data and draw their own conclusions. A suite of life distribution and repair rate modelling tools were developed to cover a range of mechanical, electrical and instrumentation assets. These may be used to forecast asset renewal rates, support lifecycle costing and system reliability calculations and are available on a CD as part of the report. The modelling tools were tested on a selection of water companies' data and nine life distribution models and twenty-nine repair rate models were produced with acceptable results. Recommendations are made for the application of the models to both capital maintenance planning and routine maintenance. Investigations on data quality performed during the project showed a need for further improvements to understand the use and value of the data being collected and these aspects are discussed.

Capital Maintenance Planning: Failure Data and Analysis Methodology for Water Mains

Ref: 06/RG/05/16            Price: £10

ISBN: 1 84057 427 5

The aim of the UKWIR National Mains Failure Database for water mains is to provide robust, validated data on which deterioration modelling and asset investment strategies can be based. The report describes the creation of the database, its structure and a protocol for future data collection. Case studies of how the database has been utilised by some water companies are provided. Options of hosting future SQL versions of the database on the internet are discussed in the report. The data comprises records of UK water supply mains listed by material, age, diameter and length.Only two UK Water Companies are not covered. The length of mains amounts to 350,000 km. The database also contains details of around 470,000 water mains failures, mostly from the period 1994 to 2002. The database preserves the anonymity of the data providers. Broad statistics on assets and failure rates are presented.

NB THE DATABASE IS NOT SUPPLIED AS PART OF THE SOLD REPORT

Deterioration Rates of Sewers

Ref: 06/RG/05/15            Price: £10

ISBN: 1 84057 411 9

The deterioration of sewers is a complex process subject to many intrinsic and extrinsic influences. The report examines the data available in the UK on which a determination of the rate of deterioration of different classes of sewers could be based. A method of predicting future rates of deterioration of sewers is proposed and is tested on two pilot sewer systems. Due to present data limitations this is based on groups of adjacent sewers. The extension of the method to individual pipe level when suitable data is available is described. The need for further sewer condition survey is discussed.

Capital Maintenance Planning Common Framework: Review of Current Practice

Ref: 05/RG/05/14            Price: £10

ISBN: 1 84057 395 3

The Capital Maintenance Planning Common Framework (CMPCF) has formed the basis for Companies€™ capital maintenance submissions at the 2004 Periodic Review (PR04) and is currently being adopted as part of business-as-usual Company processes.
The effectiveness of the CMPCF is reviewed from the perspectives of Companies and Regulators in the context of PR04 and future requirements for capital maintenance planning. Successful analytical approaches used at PR04 are identified, together with areas where further guidance or research may be beneficial. The processes involved in the application of the CMPCF by Companies and the assessment of Company submissions by Ofwat are examined and recommendations made for improvement.

Capital Maintenance Planning: Implications for Maintenance of Growth in the Asset Base

Ref: 03/RG/05/9            Price: £10

ISBN: 1-84057-315-5

The water industry has seen considerable growth in its asset base over the last fifteen years. This will be reflected in a requirement for increased levels of capital maintenance spend. The methodology, and supporting model, provide a significant component in building future capital maintenance requirements due to growth in the asset base, contributing to Stage B of the UKWIR Common Framework. The two-staged methodology allows an initial “first-cut” to focus the study. Where there is a significant impact a more detailed analysis may be prepared using either the service life profile model or the historic expenditure profile model.

Nationally Agreed Failure Data and Analysis Methodology for Water Mains : Volume I - Overview and Findings

Ref: 03/RG/05/7            Price: £10

ISBN: 1-84057-305-8

This two part report provides an account of the development of a national failure database for water mains which includes a suggested common protocol for data collection. The first part of the report sets out the principles on which the protocol was written and a description of the work involved in forming the national database. The second part is the detailed protocol. 21 Water companies collaborated on the project and 15 provided both failure and mains length data which were processed to form the first National Failure Database. Forming the database highlighted widespread reporting differences that make comparisons difficult and the protocol proposes "best practice" solutions to these differences. The protocol offers a practical way forward for companies when opportunities allow for improvements in existing systems and practices. Sold as a 2 Volume set with 03/RG/05/8

Forecasting Serviceability and Asset Performance Indicators

Ref: 02/RG/05/2            Price: £10

ISBN: 1-84057 264 7

This report describes the results of a contract carried out as part of UKWIR's programme to develop a common technical and economic framework for capital maintenance planning. It is intended for use as a reference document for water industry staff considering the levels of capital maintenance needed to maintain asset serviceability. The report reviews a range of indicators from the perspective of their suitability for estmating future capital maintenance needs; it describes the deterioration process of the principal asset groups and then discusses possible tools for forecasting the indicators. Finally, the report draws conclusions and makes recommendations for future development.

Capital Maintenance Planning: A Common Framework Volume 1: Overview

Ref: 02/RG/05/3            Price: £10

ISBN: 1-84057 265 5

This is volume 1 of a 4 volume set, all of which are provided when you order this volume. A Common Framework for Capital Maintenance Planning has been developed building upon the concepts outlined in the Ofwat letter MD161 (‘Maintaining Serviceability to Customers’). The project involved wide consultation within the UK water industry and the active involvement and contribution of the economic and quality Regulators. The Common Framework is founded on risk-based principles so that in most cases capital maintenance will be justified on the current and future probability of asset failure and the resultant consequences for customers, the environment and water service providers, including the costs arising. The Framework has been piloted by three water service providers for selected asset groups.

Consistency of Reporting Performance Measures

Ref: 17/RG/04/5            Price: £10

ISBN: 1 84057 834 3

Water companies have been working together, coordinated by Water UK and supported by Ofwat, to develop more consistent reporting methodologies for the measurement of leakage, supply interruptions and sewer flooding.

As part of this work Water UK requested UKWIR commission an independent review and challenge of the initial proposals, to provide assurance and to develop more detailed guidance.

UKWIR commissioned Atkins to carry out this review, working with company practitioner experts and a steering group including representation from companies, Ofwat,  the Environment Agency, the Consumer Council for Water and Water UK.

Ofwat has confirmed that the output of this project will not impact on PR14 PCs and ODIs. It is intended to form the basis of public reporting from 2020/21 and to inform the development of PR19 Business Plans, and the detailed reporting guidance documents are below.

This report can be downloaded free of charge by clicking here.

Modelling Sludge Opex Efficiency

Ref: 11/RG/04/4            Price: £10

ISBN: 1 84057 590 5

The main objectives of this project were to: understand the data and methodological issues that appear to have restricted previous attempts to model sludge operating costs, and; develop a robust approach to explain the variation in sludge operating costs across companies.
The first stage of the project provided recommendations to mitigate the issues identified with the data and approaches used in previous analysis. In the second stage, these recommendations were explored and econometric models for sludge expenditure were developed. These models demonstrate emperically that sludge volumes, landbank availability and population density are drivers of sludge expenditure. Data limitations have meant that it has not been possible to tackle all the issues identified in the project. However, the analysis does go some way to developing a robust econometric model for sludge costs that could be used as an alternative to the current Ofwat unit cost model.

Application of Time Series Analysis to Relative Efficiency Assessment

Ref: 08/RG/04/3            Price: £10

ISBN: 1 84057 487 9

Ofwat carries out relative efficiency analysis as part of its price control reviews. To date, Ofwat's analysis has focused on cross-sectional methods. A previous report for UKWIR, Review of the Approach to Efficiency Assessment in the Regulation of the UK Water Industry (07/RG/04/2), recommended the consideration of econometric modelling of time series panel data.

This report presents a series of time series panel data models for water service and sewerage service operating expenditure. It provides guidance on the specification and interpretation of time series models. It explains how these models could contribute to relative efficiency analysis for price control reviews.

The project also included the development of time series datasets and a software tool to specify and estimate time series models.

Review of the Approach to Efficiency Assessment in the Regulation of the UK Water Industry

Ref: 07/RG/04/2            Price: £10

ISBN: 1 84057 437 2

Could Ofwat conduct price control reviews without relying on econometric modelling and imposing the data collection burden that this entails? Could Ofwat find more robust and transparent ways of analysing and combining evidence about companies' future expenditure requirements?
This report considers these questions in response to the recommendation for a "joint industry review of efficiency studies and econometric approaches" included in the independent report commissioned by Ofwat on the conduct of the 2004 periodic review.

Topics covered in the report include:

• How Ofwat could develop its current approach.
• Radical alternatives to the current approach.
• The use of panel data analysis and other econometric techniques.
• The role of top-down productivity studies.
• The reconciliation of evidence from different sources and techniques.

International Benchmarking of Water Industry Costs and Performance

Ref: 00/RG/04/1            Price: £10

ISBN: 1 84057 208 6

The primary purpose of the project was to recommend a methodology for conducting process benchmarking on a collaborative basis. The methodology was tested and refined by conducting a case study. In addition, a review of benchmarking activity in the water industry world- wide is contained in the report.

Competition in the Water Sector: A Review of the Cost-Benefit Analysis Knowledge Base

Ref: 11/RG/03/2            Price: £10

ISBN: 1 84057 589 1N/A

There has been a great deal of dicsussion about competition reform over the past three years. This discussion has generated a large knowledge base on the costs and benefits of introducing competition in the water sector, referred to as 'the cost-benefit analysis knowledge base'.
UKWIR commissioned Oxera to review this knowledge base, with the ultimate goal of helping future policy-making decisions. The review was undertaken in two parts: Part I: a high-level review of the costs and benefits of introducing competition; Part II: a more detailed review focused on the costs and benefits of separation.
To undertake this review, Oxera explored three main sources of information: publicly available papers on water competition published over the past three years; additional industry knowledge, obtained via interviews and consultation with water companies, regulators and other key industry stakeholders; the experience of separation in other sectors, obtained via a thorough review of a number of case studies.
The fundamental finding of Oxera's review is that some areas of the CBA warrant more in-depth analysis. Based on this finding, Oxera recommends that these areas of the analysis be examined more fully as an input into future policy reform decisions.

Setting performance commitments and incentives to deliver best value for money

Ref: 16/RG/07/39            Price: £10

ISBN: 1 84057 812 2

Performance commitments (PCs) and outcome delivery incentives (ODIs) will remain at PR19, but there is a question around how the framework should be developed in future.
 
This project identified lessons learned from PR14, options for the future framework, and potential implementation issues. In terms of the future framework, it focused on four key aspects: the use of comparative information; the timeframe over which PCs are set; how ODIs are set; and how customer engagement should be carried out.
 
These topics are expected to be part of Ofwat’s consultations in late 2016 and mid-2017, meaning that the report will be of interest to those involved in that consultation.

The Full Report can be ordered in printed format as normal, or downloaded by section free of charge below:

• Overview
• Executive Summary
• Main Body
• Appendices

Water company benchmarking

Ref: 16/RG/07/38            Price: £10

ISBN: 1 84057 808 4

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.

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

Ref: 15/RG/07/37            Price: £10

ISBN: 1 84057 801 7

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 view a free copy of this report, please click here.

Wholesale and Household Retail Charging Principles - Volume 1

Ref: 15/RG/07/36            Price: £10

ISBN: 184057 770 3

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.

Realising the Wider Benefits of Sustainable Drainage

Ref: 15/RG/07/35            Price: £10

ISBN: 184057 769 X

This study explores the wider benefits arising from sustainable drainage schemes (SuDS), seeking to quantify and monetise these benefits where possible, and understand to whom the benefits accrue. Key benefits identified relate to temperature regulation, air quality, biodiversity and pollination, and mental and physical health. The authors then engaged with public health professionals to understand how best to present such evidence in order to increase the likelihood of obtaining contributory funding towards SuDS projects.

The study also considers innovative approaches to the delivery of SuDS schemes, with a focus on effective engagement with local residents, addressing car parking issues, providing incentives for the reinstatement of permeable surfaces, and working with biodiversity specialists in the design and maintenance of SuDS schemes. The accompanying guidance document makes a number of recommendations for WaSCs in respect of the delivery of SuDS schemes.

Water Framework Directive (WFD); Cost-Effectiveness of Measures in Other Sectors

Ref: 15/RG/07/34            Price: £10

ISBN: 184057 753 3

The contribution of all sectors to compliance issues were quantified using SAGIS, a modelling system developed for UKWIR, SEPA and the Environment Agency to quantify the chemical inputs into inland rivers from 12 point and diffuse sectors. This was combined with information on the effectiveness of possible measures and their costs to help determine alternative options for measures. These outputs can be considered in a wider discussion of planning approaches and to contribute information to disproportionate cost assessment.

Measures were defined in terms of percentage reductions in chemical loads and assessed with regards to changes in downstream chemical concentrations compared to environmental quality standards. A range of measures were assessed, including those targeting wastewater treatment works, urban runoff (SuDS), minewater discharges, product sources and diffuse inputs from agriculture.

Information on the effectiveness and costs of measures was gathered from various sources, including the Environment Agency's Catchment Change Matrix in relation to diffuse inputs of phosphorus, previous studies commissioned by the Environment Agency/DEFRA on minewater discharges and wider scientific literature.

Valuing Water - Phase 2

Ref: 14/RG/07/33            Price: £10

ISBN: 1 84057 733 9

This study presents a hydro-economic modelling framework for identifying and using the 'value of water' to assess the impacts of of proposed water resource interventions. The application of the framework is demonstrated by examining four different water management issues in a UK catchment: supply/demand balance planning by water companies; protection of the water environment; prices paid for water within a trading system; and abstraction charging. In each example the hydro-economic model represents flows, storages, the marginal value of water, and the economic benefits derived from water at all relevant points in a catchment over time. The results of the study show the framework can provide quantified assessments to inform water management and planning decisions.

Hydro-eonomic models can be implemented by extending the water resource models currently used by the UK water sector. Recommendations are provided in regard to the application of the approach in the UK.

Developing an Abstraction Incentive Mechanism

Ref: 13/RG/07/32            Price: £10

ISBN: 1 84057 693 6

CEPA and Mott MacDonald were commissioned by UKWIR to support Ofwat and the water companies in England and Wales in the design of an Abstraction Incentive Mechanism (AIM). In order to achieve this objective, the work has been split into two parts: Part 1, aimed at creating and assessing potential AIM packages that Ofwat could implement; and Part 2, aimed at designing and testing the implementation of Ofwat's proposed AIM package.
The work was undertaken collaboratively incorporating views from various water industry stakeholders provided during two workshops, a number of interviews, and the implementation tests. Ofwat participated in the Project Steering Group and has used the project findings to develop its AIM proposals.

Impact of the Transfer of Private Sewers and Drains

Ref: 13/RG/07/31            Price: £10

ISBN: 1 84057 690 1

The transfer of private sewers and drains in October 2010 significantly increased the length of network that water ad sewerage companies were responsible for. The project has sought to understand the causes and impacts on incident numbers of both the existing and transferred assets. The factors considered have included process, weather and customer awareness. The accuracy of company predicted workloads produced prior to the transfer have also been assessed. The report outlines the findings of the research and the major causes of impact on the data collected.

Uncertainty in Investment Planning

Ref: 13/RG/07/30            Price: £10

ISBN: 1 84057 688 X

At present, companies use varaious techniques and assumptions to address uncertainties in investment planning to cater for future unknowns, but because their assumptions and techniques differ, costs for the same activities can vary, hindering comparison.
This project developed a transparent framework, that all companies can use for estimating and managing uncertainties in investment planning to enable robust decision making. The framework includes common areas of uncertainty in investment planning and includes a range of tools of varying complexity for different levels of analysis depending on the company's resources and materiality of the specific investment planning decision. The project demonstrates the framework through worked examples and fictional case studies.

Valuing Water - Phase 1

Ref: 13/RG/07/27            Price: £10

ISBN: 1 84057 668 5

The UK's water industry uses sophisticated approaches to evaluate individual investments in water supply and waste management. However, the value of water in its many uses, including water in the environment, is not estimated directly. Recognising this value more explicitly will allow water to be allocated to those uses that generate the greatest social benefit. The purpose of this report is to define the value of water and examine the practical ways in which it can be utilised.
The valuation methods considered in the report are those that identify and quantify the demands for different uses (including water in the environment). Quantifying the demands for different uses of water allows estimation of the economic benefits generated when water is allocated to a particular use, thereby identifying those sectors that generate the most value from water. The report then describes a framework for operationalising the 'value of water' which uses 'hydro-economic' modelling which combines hydrological, engineering infrastructure, institutional and economic factors to reveal how the value of water changes over space and time.
This report recommends sectoral valuation and hydro-economic analysis to enable estimating the value of water over space and time in real water resource systems such as catchments. This is the subject of a Phase 2 study.

Wholesale and Retail Charges

Ref: 13/RG/07/29            Price: £10

ISBN: 1 84057 677 4

The aim of this study was to analyse wholesale and retail-household charging decisions under the future water and sewerage sector regulatory regime.
To undertake this analysis in a structured manner, a framework has been created to construct and assess future charging packages.
The purpose of the report is to present this framework and to show how it could be used to construct and assess three illustrative charging packages.
Companies could incorporate this framework into their decision making toolkit, further develop it, and use it in the future when they have to make charging decisions.

Investigation of Organic Compounds in Sludge - Persistent Organic Pollutants; Steroid Oestrogens; and Selected Pharmaceuticals

Ref: 13/RG/07/28            Price: £10

ISBN: 1 84057 676 6

This is the fourth UKWIR study on the occurrence of organic chemicals in digested sewage sludge. The study was driven by: An update by the CEC to the Persistent Organic Pollutants (POPs) regulations, which includes limits on sludge concentrations for some compounds; and An increased awareness of the presence of steroid oestrogens and pharmaceuticals in sludge. The project has involved the sampling and analysis of digested sludge and return liquors from 16 sludge treatment centres (STCs).
The POP compounds were not detected in any of the sludge samples. The risk posed by the proposed POP regulations limits is considered low. Steroid oestrogens and pharmaceuticals were detected to varying degrees. A high level risk assessment suggests the risk posed by the compounds to be low, however, as more information on soil effects is developed it is suggested that the risk assessment may need to be revisited in the future.

Defining and Incentivising Outcomes and Measures of Success

Ref: 12/RG/07/26            Price: £10

ISBN: 1 84057 659 6

Under Ofwat's proposed methodology for PR14, companies will be asked to propose outcomes, measures of success and outcome incentives in ther business plans. Companies will also have to engage with a wide range of stakeholders when developing outcomes, measures of success and outcome incentives.
The aim of this project was to provide a practical framework and examples for developing water company outcome incentives for the PR14 price control. The report provides guidance on how to develop measures of success, set targets, choose the appropriate incentive type, develop the structure and strength of incentives and how to evaluate the overall balance of risk and reward. The report also provides guidance on the role of stakeholder engagement in developing outcome incentives.

A Total Expenditure Approach to Cost Assessment

Ref: 12/RG/07/25            Price: £10

ISBN: 1 84057 654 5

Water and sewerage companies in England and Wales are subject to a system of price control regulation. At each price control review, Ofwat proposes constraints on the prices that these companies can charge consumers over the next five years. Similar regulatory regimes apply in Scotland and Northern Ireland. At previous price control reviews, Ofwat has assessed companies' efficiency and expenditure requirements separately for capital expenditure and operating expenditure, using different methods. There are some good reasons for making separate assessments. But there are also concerns that Ofwat's approach overlooks the interactions between operating and capital expenditure and contributes to a risk of an undue bias towards capital expenditure. This project explores the potential to introduce a total expenditure approach, which would better align the treatment of operating expenditure and capital expenditure. It identifies several different ways to do so and provides a systematic analysis of their benefits and drawbacks.

Alternative Measures of Inflation in the Regulatory Framework

Ref: 12/RG/07/24            Price: £10

ISBN: 1 84057 617 0

This is the report from the UKWIR study on alternative measures of inflation. Its purpose is two-fold: to examine the implications of using the Consumer Prices Index (CPI) rather than the Retail Price Index (RPI) as the water and sewerage industry's main price control index; and to consider how best to index Ofwat's capital expenditure allowances.
On the first of these issues, the report highlights how a switch of index might reduce unhelpful volatility in prices, but would also result in higher customers bills and have unsettling effects on investors. The report recommends that Ofwat should index price controls in line with RPI for the forseeable future. On the second issue, the report identifies a number of candidate capital cost inflation indices, but finds concerns with all of these options. The report concludes that Ofwat should consult during the next periodic review on the possibility of dispensing with a specific capital cost indexation mechanism in favour of indexing capex allowances in line with RPI.

Carrying out Willingness to Pay Surveys

Ref: 11/RG/07/22            Price: £10

ISBN: 1 84057 607 3

This report sets out recommendations on the methodological steps for undertaking willingness to pay (WTP) surveys. These surveys are undertaken by water companies to elicit customers' preferences on aspects of service and environmental quality as part of a decision-support tool for investment planning. The report provides guidance on ways to identify and prioritise aspects to include in surveys. It offers a menu of options that might be included and recommendations on how these should be defined and presented in surveys. Guidance on other features of survey design is also provided. Where aspects are better valued through means other than WTP surveys, recommendations are provided on the best approaches to valuation. Recommendations are the result of an extensive work programme, including widespread consultation with industry stakeholders, interviews with leading global stated preference practitioners, an analytical review of companies' past surveys, qualitative testing with both residential and business customers, and interviews with industry asset planners. Project outputs include a Practitioners Guide for asset planners and others in water companies to assist them in deriving consistent, robust and reliable benefit estimates for their investment planning.

A Review of the Scientific Basis for Proposed EU Limit Values for Organic Chemicals in Sludge

Ref: 11/RG/07/23            Price: £10

ISBN: 1 84057 606 5

This is the third study on the occurrence of organic chemicals in sludge, commissioned in response to proposed changes to the Sludge Directive (86/278/EEC) and the potential introduction of limits on organic chemicals in sludge applied to land.
An earlier study had highlighted polycyclic aromatic hydrocarbons (PAHs) as a potential compliance risk.
In this project, potential human and environmental health risks posed by PAHs have been assessed and for the majority of congeners negligible risks have been identified. Benzo(a)pyrene has been highlighted as a potential risk. However, based on an understanding of exposure mechanisms, the uncertainties in the derivation of toxicological impact levels and the strict controls that already exist in the UK, it is concluded that the presence of benzo(a)pyrene in sludge recylced to land poses a negligible risk to public health and that any future restrictions on the basis of public health cannot be justified.

Barriers to 100% Compliance, or Is It Achievable?

Ref: 11/RG/07/21            Price: £10

ISBN: 1 84057 602 2

There is an expectation from the quality regulator that water companies should be capable of achieving full (100%) compliance with the drinking water quality standards. Constraints that prevent companies achieving full compliance include: the condition of customers' plumbing, external factors(eg extreme weather), human error and technical limitations. It is reasonable to expect a company to achieve full compliance with those standards that can be directly controlled by good operational practice. However, full compliance cannot be guaranteed, regardles of the effort and cost expended, since certain external causes of contraventions are beyond the control of the water company. Moreover, fractional and incremental improvements in compliance are evermore costly, increase energy and chemical consumption and may deliver only limited health benefits. Ultimately, compliance is a quality assurance scheme and conformance by itself is not a guarantee; it is one of a number of measures to protect public health that are embodied in water company risk assessments.

Alternative Approaches to Efficiency Assessment and Economic Incentives

Ref: 11/RG/07/20            Price: £10

ISBN: 1 84057 588 3

Water regulation faces significant external factors which may mean that the existing regime is no longer fit for purpose. Climate change, changes to industry structure and demographic change are all factors that could lead to a need for either incremental or fundamental changes to the regulatory regime. The report considers: (i) areas where change may be needed; (ii) what the options are; (iii) experience from other sectors and internationally; and (iv) makes recommendations either for what changes to implement or what further analysis is needed to determine a way forward. The main report is supported by a series of case studies and analytical annexes.

Investigation of Organic Chemicals in Sludge

Ref: 10/RG/07/19            Price: £10

ISBN: 1 84057 577 8

This study on the occurrence of organic chemicals in sewage sludge was commissioned in response to proposed changes to the Sludge Directive (86/278/EEC) and the potential introduction of limits on organic chemicals in sludge applied to land.
An earlier study highlighted the potential risks posed by di(2-ethyhexyl)phthalate, linear alkylbenzene sulphonates, and polycyclic aromatic hydrocarbons (PAHs) but recommended that monitoring studies be implemented to augment the paucity of UK data.
In this project, samples from sixteen sludge treatment centres have been analysed for a range of compounds. PAHs have been identified as posing the highest risk of non-compliance against proposed limits. Options to mitigate the risk have been assessed. Given the prohibitive financial and environmental costs of the options, the primary recommendation was that the water industry should consider undertaking an evidence based study on the risks posed by PAHs to human health and the environment from sludge applied to land.

Review of Cost-Benefit Analysis and Benefit Valuation

Ref: 10/RG/07/18            Price: £10

ISBN: 1 84057 574 3

This report makes recommendations on the future application of cost-benefit analysis (CBA) and benefits valuation for water companies and their regualtors. The report documents an independent review by a multi-disciplinary team of experienced consultants and leading academic experts of the use and application of CBA and benefits valuation in investment planning and decision making at the 2009 Periodic Review (PR09). An analytical review and quantitative analysis of Business Plans was undertaken together with a substantial consultation and engagement process with all water sector stakeholders. The findings from the research help address four key questions. 1) What happened at PR09? 2) What can be learnt from the PR09 experience? 3) What is the future role for CBA in business planning in the water industry? 4) How can the future role for CBA be developed? In addition to a synthesis of the findings and recommendations, the study also produced a Practitioners Guide for asset planning managers and others in water companies to assist them in the delivery of benefit valuation and CBA for future price setting exercises.

Regulatory Incentives and Information Requirements

Ref: 10/RG/07/17            Price: £10

ISBN: 1 84057 560 3

Water regulation faces significant external factors which may mean that the existing regime is no longer fit for purpose. Climate change, changes to industry structure and demographic change are all factors that could lead to a need for either incremental or fundamental changes to the regulatory regime. The report considers: (i) areas where change may be needed; (ii) what the options are; (iii) experience from other sectors and internationally; and (iv) makes recommendations either for what changes to implement or what further analysis is needed to determine a way forward. The main report is supported by a series of case studies and analytical annexes.

Consequences of Controls on Organic Chemicals in Sludge

Ref: 08/RG/07/16            Price: £10

ISBN: 1 84057 508 5

The study has examined the risks, options and costs to the UK water industry associated with sewage sludge non-compliance against organic chemical limits proposed for inclusion in furure revisions to the 1986 EU Sludge Directive (86/27/EEC). Using the limited data available, source assessments and fate modelling have highlighted di(2-ethyhexyl)phthalate (DEHP) as being the compound of primary concern with respect to compliance risk. Thermal destruction and composting have been identified as the primary treatment options to mitigate the risks of non-compliance across all compounds. The need for further investigations (including monitoring) to establish with greater certainty the current risks has been included as one of the study's recommendations.

Operating Cost Implications of Capital Investment

Ref: 08/RG/07/14            Price: £10

ISBN: 1 84057 490 9

Operating costs are one of the potentailly significant cost categories that need to be taken into consideration when estimating the whole life cost (WLC) of investments. Robust estimates are required in order to identify least cost long-term options and to assess the trade-offs between capital and operating costs.

This project developed a best practice appraoch to forecasting operating expenditure (opex) arising from capital expenditure (capex). The report also provides detailed guidance on how to develop an opex forecast using a range of top down and bottom up methods.

To facilitate and promote the use of best practice by water companies an excel based tool was developed to assist in the application of the methodology. Once Company specific operating unit cost data have been entered into a central database the tool can be used to forecast opex by cost category. It has allowances for asset utilisation, deterioration and different inflation indices. A user guide and examples are provided in the accompanying report (08/RG/07/15) for practitioners.

Both reports sold as a set for £400

The Role and Application of Cost Benefit Analysis - Volume II:Sewer Flooding Guidance

Ref: 07/RG/07/10            Price: £10

ISBN: 1 84057 456 9

This report presents guidance on the application of cost benefit analysis to the alleviation of sewer flooding risks.  The guidance is intended to be consistent with, and complementary to the generic guidance (Volume I - 07/RG/07/9). In applying CBA to appraise investments to alleviate sewer flooding risks, a number of recommendations are made, especially with respect to the important task of estimating the monetary value of benefits.

The Role and Application of Cost Benefit Analysis - Volume I: Generic Guidance

Ref: 07/RG/07/9            Price: £10

ISBN: 1 84057 455 0

This report presents generic guidance on the application of cost benefit analysis ("CBA") to water industry investment planning. The generic guidance is based on a five step approach to the application of CBA to water industry investment planning. This 5 step process for applying CBA to investment appraisal is summarised as:1) defining objectives, 2) establishing the baseline and investment options, 3) measuring costs and benefits, 4) analysing costs and benefits and 5) examining distributional impacts. The issues that will face water industry investment planners at each stage of applying CBA are examined, the appropriate analytical tools are identified and examples are used throughout to illustrate the application of those tools.

A second volume - report 07/RG/07/10 - presents guidance on the application of cost benefit analysis to the alleviation of sewer flooding risks.  The guidance is intended to be consistent with, and complementary to the generic guidance in this report. In applying CBA to appraise investments to alleviate sewer flooding risks, a number of recommendations are made, especially with respect to the important task of estimating the monetary value of benefits.

Accommodating the Implications of the Revised EU Sludge Directive

Ref: 06/RG/07/8            Price: £10

ISBN: 1 84057 401 1

The recycling of sewage sludge (biosolids) to agricultural land is one of the most effective means of dealing with the main by-product of wastewater treatment. The key objective of this project is to provide information that will enable the UK water industry to influence the development of the soil protection strategy of the European Union (EU), and specifically any revisions to the Sludge Directive (86/278/EEC). The focus of the work has been to review the implications, risks and threats that might arise from the emerging and existing legislation. The information in the report should help to build confidence in the safety of recycling of sewage sludge to land and avoid unnecessary restrictions on this outlet which is generally considered to be the best practicable environmental option (BPEO). It should also support the translation of the EU legislation into UK Regulations and policy.

Issues and Practice Concerning Supply Pipes

Ref: 04/RG/07/5            Price: £10

ISBN: 1-84057-336-8

Supply pipes are privately owned and maintained in the UK and yet are the location of a significant proportion of total leakage. This scoping study provides an overview of policies and practice relating to supply pipes. Both water company and customer views have been obtained on issues including common supplies, lead supply pipes and free leak repair schemes. Although the arrangements for supply pipes could be considered essentially fair, there is little understanding of them among the public and there could be significant benefit from providing more information to customers and property professionals. A variety of alternative arrangements for the supply pipe are considered. The costs and benefits of alternatives are difficult to assess as there is insufficient reliable data available relating to the supply pipe asset and its condition. Further data collection by water companies and research on private expenditure is recommended.

The Economics of Achieving Good Water Status with Water Industry Measures: An Assessment of the Scale and Scope of Potential Costs Associated with the Water Framework and Related Directives

Ref: 03/RG/07/3            Price: £10

ISBN: 1-84057-309-0

The objective of this project was to review issues concerning the implementation of the Water Framework Directive (WFD) and to consider the scale and scope of the potential cost impacts.
The WFD represents an important departure from previous EC legislation on water quality. It introduces an integrated and co-ordinated approach to water management in Europe based on the concept of river basin management planning. Implementation of the WFD will present decision-makers with difficult choices about the scale, scope, timing and financing of future water qualtiy improvements.
The findings of this study should help to provide valuable information about the scale of WFD implementation costs and emphasises the need for water quality improvements to be considered over longer time horizons than the curent AMP cycles.

Towards an Environmentally Effective and Socially Acceptable Strategy for Water Metering in the UK

Ref: 98/RG/02/1            Price: £10

ISBN: 1 84057 125 X

This research identifies a series of questions that need to be answered in order to devise an environmentally effective and socially acceptable water-metering strategy for the UK. The study provides a detailed review of the available options at each stage. By means of a case study for the Severn Trent water company area, it is shown that the environmental and social consequences of metering are critically sensitive to the design of the measured tariff structure.

Towards an Environmentally Effective and Socially Acceptable Strategy for Water Metering in the UK – Technical Report

Ref: 98/RG/02/2            Price: £10

ISBN: 1 84057 126 8

This research identifies a series of questions that need to be answered in order to devise an environmentally effective and socially acceptable water-metering strategy for the UK. The study provides a detailed review of the available options at each stage. By means of a case study for the Severn Trent water company area, it is shown that the environmental and social consequences of metering are critically sensitive to the design of the measured tariff structure.

The Application of Process Intensification in the Water Industry

Ref: 15/RG/10/8            Price: £10

ISBN: 184057 560 6

Process Intensification (PI) means a significant reduction in size of a unit operation or simplification of processes by combining process steps, creating new technologies with significantly lower capital and running costs and improved sustainability PI is now considered one of the most promising development areas for modern chemical engineering and has been applied in wider industry since the 1970s.

The aim of this project was to analyse the main processes used in the water industry, with a view to suggesting replacement by intensified process technologies. A range of technologies have been identified, which potentially have application in enhancing the performance, technically and commercially, of the 'conventional' water and wastewater flow-sheet. More novel technologies that enhance mass transfer and increase chemical reaction kinetics may offer opportunities in, inter-alia, meeting anticipated regulatory objectives with significant impact, particularly in water treatment - and potential applications in wastewater, sludge and odour treatment.

Indicators of Water Sector Innovation: Information Tool, Summary Report

Ref: 14/RG/10/7            Price: £10

ISBN: 1 84057 719 3

This report describes the development of the innovation indicators tool on behalf of the Water Sector Innovation Leadership Group.

The tool aims to provide a picture of the level of innovation in the UK water sector. The tool is hosted at www.WaterSectorInnovation.org and provides a web-based interface to innovation indicators submitted by different organisations that make up the UK water sector.

The report describes the initial development of the indicators, the organisations from which data was requested and received, and makes recommendations for the required actions to make the tool a useful resource for presenting a comprehensive and robust picture of the level of innovation within the UK Water Sector.

Research and Innovation Mapping Study for the UK Water Research and Innovation Framework

Ref: 11/RG/10/6            Price: £10

ISBN: 1 84057 599 9

This report was commissioned as part of work towards a UK Water Research & Innovation Framework (UKWRIF) in collaboration with UKCDS and LWEC. It comprises a high level overview and synthesis of recommendations from key policy and research reports relevant to the UK's potential contribution to UK and global water security.
The team of 14 water experts from industry and academia who contributed to the report found evidence to suggest increasing concern in water security and an associated need for innovative and affordable solutions. The complex issues cover a wide range of political, social, environmental and technical challenges.
Water security in the UK is significantly impacted by our imported, global water footprint and is inextricably linked to food and energy security and long term urban planning. A UK framework providing leadership and direction for delivering research and innovation in the 6 priority sectors identified in this report is recommended to increase UK water security and economic growth opportunities in the global market.

Research and Innovation in the UK Water Industry

Ref: 11/RG/10/5            Price: £10

ISBN: 1 84057 581 6

This project was commissioned following the reports of external reviews concluding that the UK's water industry should innovate more. Innovation is seen as an economic good and the source of productivity growth, bringing benefits to customers and the environment by enabling the industry to meet the challenges it faces, whilst reducing the need for increases in customer bills. The reviews identified ways of improving the innovative capacity and performance of the sector, including changes to regulatory incentive mechanisms, additional specific funding for innovation and increased research collaboration. The project assessed these issues and options for change by reference to experience in the UK water sector, in other countries and in other regulated and not regulated sectors. Evidence was drawn from recent reviews, other literature and extensive engagement with stakeholders. The report makes recommendations which aim to foster a new and practicable solutions-focussed approach to enhancing innovation in the sector.

The Regulatory Cycle and its Impact on the Efficiency of Supply Chain Delivery

Ref: 07/RG/10/4            Price: £10

ISBN: 1 84057 459 3

Since water industry privatisation in 1989, dramatic variations in capital expenditure have had a profound effect on the industry's suppliers who are often faced with a 'feast or famine' situation and little long-term visibility of workload.
This project has explored the root causes of the expenditure cycle and for the first time attempted to quantify its economic impact, based on detailed information provided by Ofwat, the water companies and a diverse cross section of suppliers.
The report identifies specific costs attributable to the expenditure cycle and highlights growing concerns about the impact that uncertainty is having on recruitment and retention of specialist skills within the sector.
The report includes over 30 recommendations for integrated action by regulators, water companies and suppliers which could help to minimise the adverse impacts of the cycle and lead to more sustainable long-term arrangements for delivering future investment programmes.

A Road Map of Strategic R&D Needs to 2030

Ref: 07/RG/10/3            Price: £10

ISBN: 1 84057 453 4

Theme specific road maps provide a new shared vision: a framework that can give direction to the supply chain and the research community that will deliver solutions for the water utilities medium and long term needs.  The maps (underground assets, sustainable leakage, intelligent customer metering, energy efficiency, and chemical free treatment) address key issues facing the water sector. They are not the only issues but the format provides a good model for future mapping.

Mapping capital and operational spend by the water sector against the UKWIR strategic matrix provides a strategic overview of how the industry has responded to historic regulatory drivers and how it might respond to future drivers.  A coherent view of the water sectors research needs will ensure that research and development is better targeted to meet those needs. The road maps provide clear guidance for the investment required. The long-term maps will inform the 25-year view that water and wastewater companies are developing for submission to the regulators. Clearly defined benefits will support the business case for increased investment in research and innovation.

Barriers to Innovation in the Water Sector: Output from the Project Dissemination Conference, DTI Conference Centre December 2006

Ref: 07/RG/10/2            Price: £10

ISBN: 1 84057 428 3

The report contains the proceedings and output from a conference to discuss the findings of the UKWIR Barriers to Innovation project report 06/RG/10/1. The original work was carried out by the Policy Research in Engineering, Science and Technology centre (PREST) at the University of Manchester. The purpose of the conference was to review the findings of the PREST study and agree joint actions.
Representatives of stakeholders including Ofwat, water companies and the supply chain each provided a perspective on the research and alignment of action was explored through facilitated group working.  Delegates concluded that there was a need to bring all stakeholders and policy makers together to agree the long term strategic goals for the sector to which innovation could contribute. This should be done as quickly as possible to ensure that such goals and their implications were included in the PR09 business planning cycle.

Barriers to Innovation in the UK Water Industry

Ref: 06/RG/10/1            Price: £10

ISBN: 1 84057 423 2

The project explores enablers and barriers to innovation within the UK water industry, focusing on the application of new technological products and processes. Ten innovation cases are researched involving interviews, opinions and evidence from over 100 stakeholders, representing 54 unique organisations. Regulatory (systemic) and non-regulatory (market) influences upon success or failure are determined and relevant data, literature, reports and policy materials are reviewed. Within the limits of the evidence the project concludes there is misalignment of expectations between the supply-chain, the water companies, the regulators and government which is limiting the sector's ability to fully exploit its capacity for technological innovation to sustainably meet the future needs and challenges of UK and world markets. The project suggests that a collaborative innovation strategy for the industry should be developed with all key stakeholders.

Water Framework Directive (WFD); Disproportionate Costs

Ref: 15/RG/08/10            Price: £10

ISBN: 1 84057 792 4

‘Disproportionate cost’ represents one of the key tests for an exemption to meeting the objectives of the Water Framework Directive. This project reviewed guidance for disproportionate cost assessment available at the time and tested it using three key challenges to the water industry likely to be faced in RBMP2 as demonstration cases. The key challenges tested were: 1) river flow impacts on aquatic ecology; 2) river eutrophication risk from nutrients and impacts on aquatic ecology; and 3) chemical impacts on aquatic systems.

Learning from the First Cycle of the Water Framework Directive

Ref: 15/RG/08/9            Price: £10

ISBN: 184057 766 5

This report presents evidence from across Europe to assess which measures have worked well and not so well in the first cycle (2009-2015) of the Water Framework Directive. The report identifies whether other, more effective solutions are available that could be used in the second cycle plans in the UK and also compares the level of ambition across Member States.

In many cases it is too early to have conclusive evidence of the success of measures. However, the report draws upon twelve case studies from across Europe and interviews with Member States. The main lessons from these are: that more action is needed to control substances at source; that stronger incentives are needed to promote action on diffuse pollution; that economic appraisal needs to be consistent across spatial scales; and that unless entire packages of measures are funded they will be ineffective.

A Review of Current Trade Effluent Allowances and Fixed Strengths

Ref: 15/RG/08/8            Price: £10

ISBN: 184057 765 7

Water and Sewerage Companies (WASCs) recover costs for treating trade effluent using the Mogden formula which ensures that all customers are paying their appropriate share. The formula calculates charges based on the effluent volume and strength discharged, though in practice these may be difficult to measure. Therefore, WASCs apply allowances and fixed strengths to estimate these, which provide WASCs and traders both financial and timesaving benefits. However, the opening of the non-household retail market in 2017 could see increased challenges from traders if volume and strength estimates are not consistent and transparent.

This project provides a robust reference review and industry wide guidance of when and how to apply allowances and fixed strengths. The key findings are that the 25 l/person/day domestic allowance used by most WASCs remains a valid estimate of domestic water use and approaches to non-return to sewer allowances are fair and transparent. It is however recommended that allowances should be calculated in conjunction with a water balance and if trade effluent customers disagree with their allowance they can fit sub meters and effluent meters. Technical guidance documents were developed to facilitate consistency in managing trade effluent.

Evaluating Abstraction Reform Proposals Phase 2 - Testing the Approach to Transition

Ref: 14/RG/08/7            Price: £10

ISBN: 1 84057 741 X

This report considers the potential for impact of the government's proposals for reform of the abstraction licensing system on the water industry in England and Wales, focusing specifically on the transition of licences into a new system.

The report is the second of two reports comissioned by UKWIR, in co-operation with Defra, the Welsh Government, Natural Resources Wales and the Environment Agency and takes forward recommendations from the Phase 1 work and more recent thinking by Defra and the Welsh Government on potential approaches to the transition of licences into a new system.

The report provides an overview of the issues, risks and opportunities through licence transition to assist companies, Defra and the Welsh Government in their discussions and further development of the proposed reforms. The findings and recommendations provide a basis for the industry to work with government and regulators to carry out more detailed assessment of aspects of the proposed reforms prior to their implementation, to avoid potential for unintended consequences for water availability for supply, whilst still supporting the objectives of reform.

Wastewater Supply-Demand Framework

Ref: 14/RG/08/6            Price: £10

ISBN: 1 84057 732 1

The original 'Long Term Least Cost Planning for Watewater Supply Demand Framework' was published in 2007 (07/RG/08/2). This report updates the framework to reflect changes to the regulatory environment and state of knowledge, including the implications of the Drainage Strategy Framework (DSF). Key themes for the update were identified through consultation with those involved in wastewater supply demand planning in conjunction with a literature review.

The focus of the WWSDF has been broadened beyond price review business planning to the wider decision-making process. The report sets out a three stage process in which company planning and implementation sit within a long term strategy. For each stage, the key principles and approach envisaged are described. In addition, the report includes guidance on the key themes identified through the consultation process and a high level roadmap for roll out of the framework. Guidance on the application of the DSF and a summary of the literature review are included as appendices.

Evaluating Abstraction Reform Proposals

Ref: 14/RG/08/5            Price: £10

ISBN: 1 84057 728 2

This report considers the potential for impact of the government's proposls for reform of the abstraction licensing system on the water industry in England and Wales. Drawing on available evidence together with views provided by water companies, it provides an overview of the potential issues, risks and benefits to water companies in England and Wales.
The report identifies a number of areas where further work in collaboration with Defra and the Environment Agency is recommended to develop the details of the proposed reforms and how they are intended to be implemented.
The report was commissioned to support water companies in their responses to the Defra consultation on the proposed reforms.

Sustainable Regulation

Ref: 12/RG/08/4            Price: £10

ISBN: 1 84057 626 X

There is a growing perception that increasingly complex regulations are driving unsustainable outcomes across the water industry. This study reviews the existing economic and environmental regulatory regimes within the context of a move towards a more sustainable regulatory regime.
The report clearly sets out recommended areas for priority action in England and Wales, Scotland and Northern Ireland; either in regulatory or legislative change, regulatory incentive mechanisms, or in regulatory policy and approach. The outputs, which form a detailed action plan and roadmap towards sustainable regulation, will inform future negotiations.
Whilst there has been considerable progress in the topic of sustainable regulation, the current policy landscape is rapidy changing and this provides a timely opportunity for taking forward the views and recommenndations identified. The key recommendation is that water companies seek to adopt the roadmap, where possible aligning with their own strategic objectives, and lobby for necessary recommended research/policy changes.

The New Industrial Emissions Directive (IED) - What are the Implications for the Water Industry?

Ref: 11/RG/08/3            Price: £10

ISBN: 1 84057 603 0

The Industrial Emissions Directive (IED) replaces the Integrated Pollution Prevention Control Directive (IPPC) and six other Directives. The scope of the IED is broader, including 'recovery' as well as 'disposal' activities. This creates the potential to significantly affect the range and number of activities operated by the water industry that will require permitting, improvements, compliance monitoring and reporting. The IED also strengthens the role of BAT (best available technique) in the permitting process and operation of plants. A detailed legislative gap analysis compares and contrasts the current proposed IED with the existing regulatory controls, and identifies differences in areas of application and definitions. Future compliance costs for the UK water industry are predicted to be in the region of £90m, and in the order of £30m for ongoing costs over the following 5 years for the 178 sewage treatment plants potentially falling under the new 'recovery' criteria.

Long Term/ Least Cost Planning for Wastewater Supply-Demand

Ref: 07/RG/08/2            Price: £10

ISBN: 1 84057 451 8

This report presents an outline wastewater supply-demand planning framework.  A standard approach to long term least cost planning is set out, taking account of whole life costs and external impacts.  The report presents a range of tools and approaches for planning in the face of uncertainty and presents definitions of key terms such as 'urban creep' and 'headroom'.  The results of five case studies are presented to demonstrate the application of the methodology.

Serviceability Methodologies

Ref: 12/RG/01/4            Price: £10

ISBN: 1 84057 620 0

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.

Serviceability Methodologies

Ref: 12/RG/01/4            Price: £10

ISBN: 1 84057 620 0

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.

Customer Involvement in Price Setting

Ref: 11/RG/01/3            Price: £10

ISBN: 1 84057 600 6

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.

Review of Serviceability Indicators

Ref: 06/RG/01/2            Price: £10

ISBN: 1 84057 416 X

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.

Quantification of Serviceability

Ref: 98/RG/01/1            Price: £10

ISBN: 1 84057 137 3

The water industry is concerned that Ofwat?s 'serviceability' approach to setting price levels at the 1999 Periodic Review will result in capital maintenance funding being linked to inappropriate serviceability measures and will perpetuate historic expenditure levels which do not reflect future needs. This report therefore aims to clarify the meaning of 'serviceability' and considers whether it is feasible to optimise it. It considers both the regulation of serviceability and methods of analysis that can be used by water companies to improve it. Criteria for evaluating possible serviceability measures are developed and applied. This leads to the conclusion that the main disadvantages with Ofwat's current measures are that they are backward looking, so do not serve as leading indicators, and they do not necessarily reflect customer requirements. The current measures thus have shortcomings both as a means of regulation and as a management tool. Possible new measures are considered