PR14 Delivery Partner

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Client Ofwat
Dates 2015
Sector(s)Water
Service(s)Regulation & Competition

CEPA, as part of a consortium with PwC and Jacobs, provided advice and support to Ofwat during the price review of the water and sewerage industry in England and Wales to set prices for 2015-2020. The delivery partner worked across all levels and areas of the price control with Ofwat.

The project involved:

  • CEPA leading the wholesale work stream support to Ofwat;
  • the review and assessment of planned wholesale expenditure (making up 90% of company costs) for 18 water companies and 10 sewerage companies;
  • CEPA team members acting as secondees;
  • managing third party contractors and overseeing the work of large teams of both Ofwat staff and consultants; and
  • significant liaison with the Outcomes team to ensure that the regime was appropriate.

Ofwat successfully completed the price review on time and with only one appeal, even though significant changes were implemented from the previous price control.

The delivery partner project is also linked to CEPA’s work in the lead up to PR14 on menus and totex modelling.
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