Performance Commitments and Outcome Delivery Incentive Rates

Descriptions

The objective of this work is to inform Ofwat's development of the outcomes framework for PR19. In particular, the objective is to inform the rules and guidance we give to companies on setting PC levels and ODIs in the PR19 methodology statement. The work must take account of our May 2016 customer engagement policy statement for PR19 and the new information that will be available at PR19 (for more details, see the background section). The work involves reviewing the use of stated preference WTP approaches to setting PC levels and ODIs; identifying alternative approaches to setting PC levels and ODIs, including industry-standard ODIs; defining assessment criteria for approaches to setting PC levels and ODIs; and assessing the approaches and identify a short-list. In carrying out the work the Contractor will need to consider the specific questions outlined in section 3.2 of the ITT. We would welcome further suggestions from Contractors on what else should be considered as part of this work.