Our Business Plan 2020 to 2025

Developing our Business Plan

Our full business plan for 2020 to 2025 and supporting appendices are available in the side panel of this page.

You can also read, '5 years, 5 pledges' the summary of our plan.

 

At the end of January 2019 we received Ofwat’s ‘initial assessment’ of our Business Plan for 2020 to 2025. Each water company’s plan was assessed according to its quality, ambition and innovation and there were four categories – exceptional, fast-track, slow-track and significant scrutiny. Along with the majority of the industry, our plan was given slow-track status. 

Over the last couple of months we have been analysing Ofwat’s assessment in more detail and have addressed the areas that needed further work whilst ensuring that our plan can still deliver what matters most to our customers. On 1 April 2019 we re-submitted the relevant sections of our plan.


Our engagement programme, Talk on Water, has involved talking to nearly 3,000 people about their needs and priorities for their water service. The following timeline sets out how we developed our plan.

May – July 2017:  'Listen, learn and inform' - we gathered views on customer priorities, now and in the future through focus groups and in-home interviews.

October 2017 to January 2018: 'Test and review' - we asked more detailed questions about different aspects of our services and how much customers would be prepared to pay for improvements. We also asked a wider range of customers about their priorities, including those experiencing difficult circumstances.

January 2018: Publication of our Long Term Vision – tell us what matters most to you in the future.

February 2018: Public consultation on our draft Water Resources Management Plan –so customers could comment on our plans to secure resilient water supplies.

Spring 2018: 'Seeing the full picture' – we published our draft Business Plan – and asked customers whether our plan reflected their priorities and would deliver more of what matters most.

Summer 2018: We updated and finalised our Business Plan, making some changes because of customer feedback. We submitted our plan to Ofwat on 3 September 2018.

We also produced a Statement of Response to our draft Water Resources Management Plan consultation and updated it to reflect the feedback we received. Our revised draft Water Resources Management Plan was submitted to Defra for approval on 3 September 2018.

January 2019: Ofwat issued its 'initial assessment' which means categorising each one according to its quality, ambition and innovation. Our business plan was given 'slow-track' status

Spring 2019: We expect to publish our final Water Resources Management Plan, once we receive approval from Defra.

December 2019: Ofwat will make its final determination on our plan and set the service levels we must deliver and the cost of bills for 2020 to 2025.


The role of Ofwat

Ofwat was created when the water industry was privatised in 1989. As most people cannot choose their water supplier, one of the economic regulator's duties is to set the price, investment and service package that customers receive. They do this every five years and must balance the interests of customers with ensuring that companies can pay for and deliver the services they need to. 

Ofwat is making changes to the regulatory framework from 2020. These changes are to encourage competition in the provision of water resources, the part of our business that abstracts water from rivers or the ground. In order to make these changes, Ofwat has asked us to supply them with our view on the relative proportion of the business, the 'Regulatory Capital  Value', that is used in water resources. Our submission to Ofwat has been externally assured and signed off by the Company’s Board of Directors.

In preparation for the review of our business plan in September, Ofwat has requested that we provide them with information on our performance over 2015 to 2020. This covers three years of known performance and two years of forecast performance. This information can be found in a series of tables and is explained in our letter to Ofwat. The letter includes a statement from the Company’s Board.

To find out more about Ofwat and their role in our business plan visit https://www.ofwat.gov.uk/.


Our full business plan for 2020 to 2025

 

Initial assessment of Business Plans pro-forma

Business plan presentation pro-forma

Business plan presentation pro-forma - guidance tables

Bill movement model

Ofwat financial model - actual

Ofwat financial model - notional

RCV adjustment feeder model

Revenue adjustment feeder model

A short guide to what's in our plan

Our business plan video

A1.1 - Phase one research report

A1.2 - Phase two qualitative research report

A1.3 - Phase two quantitative research report

A1.4 - Phase three small company research report

A1.5 - Phase three vulnerability research report

A1.6 -  Phase three acceptability research report

A1.7 - Our response to the CSP's draft report

A1.8 - Looking forward - our long-term vision

A1.9 - 5 years, 5 pledges - our business plan consultation

A1.10 - Draft water resources management plan consultation

A2.1 - Evidence and triangulation

A2.2 - Performance commitment definitions

A2.3 - Performance commitments - delivering ambitious performance

A4.1 - Softening cost adjustment claim

A4.3 - DWI statement for Customer Scrutiny Panel

A4.4 - Bid Assessment Framework

A5.1 - Cost of capital premium and net customer benefit - PR14 submission

A5.2 - Funding efficiently incurred embedded debt at PR19

A5.3 - The value of small local water only companies

A5.4 - Form of undertaking for AMP8 headroom

A5.5 - S & P Global Corporate Credit Rating

A7.1 - Resilience risk profile maps

A9.1 - WISER report

A12.1 - Business Plan data tables 

A12.2 - Business Plan data table commentary

A12.3 - PR19 Steering Group Terms of Reference

A12.4 - Board Assurance Statement

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