Ofwat publishes detailed requirements for company delivery plans

Ofwat has published further guidance on the information that water companies need to provide for their PR24 delivery plans. These plans seek to increase transparency and accountability relating to the enhancement programme, given it has swollen in size from PR19. Ofwat said they will enable delivery issues to be spotted early and any interventions to be timely.

The final determinations required each company to publish a delivery plan showing how it will meet the price control deliverables (PCDs) and interim milestones for their enhancement programmes. Ofwat told companies to report on progress on a six monthly basis, in October/November and April/May of each year. It also asked companies to submit an independently assured report of their progress against their delivery plan in July each year, alongside their annual performance reporting.

The new guidance provides further clarity on the information Ofwat expects. This includes how the regulator has worked out the profile of PCD output targets and associated expenditure allowances, and the commentary that companies need to provide alongside their delivery plan submissions. Ofwat said it was based on stakeholder engagement, including at a February workshop.

Draft delivery plans need to be submitted by 12 May, and final plans submitted and published by 15 July.