PwC was appointed as Ofwat’s delivery partner to support them during the 2019 Price Review (PR19) of the 17 water and sewage companies across England and Wales to set prices and incentives across the industry for 2020-25. PwC worked in collaboration with Ofwat between June 2018 and December 2019 in assessing business plans from the Initial Assessment of Plans through to Draft and Final determinations, involving over 60 team members across capabilities including economics, strategy, assurance and research.
PwC provided integrated delivery partner support to Ofwat, embedding our people within their teams to assess company business plans. The program was structured across 9 test areas covering all aspects of company activity:
Across these test areas we reviewed company plans, set actions for companies to improve them, and intervened where a company was not meeting Ofwat’s expectations.
In addition, we also provided support for the organisation and running of the program, and were involved in the decision making process throughout. We worked in the heart of teams, and directly contributed to its achievements, from designing and integrating financial models, refining incentives to improve the service and performance of water companies, and bringing the results together into clear documents for interested parties.
Through our continued engagement with the water regulator and regulated water companies we are in a unique position to advise in a wide variety of areas in the water sector. Please refer to our recent thought leadership piece for further insights.