Ofwat expects transparency from firms in annual performance reporting

Ofwat has set out its expectations for the way it expects all monopoly water companies to report on their annual performance for 2017-18.

Ofwat has told the water companies that it expects them to be transparent about their performance and explain “clearly, and in a balanced way, what is driving performance and the steps they are taking to improve.”

It said it expects all companies to follow its guidance when they report on their annual performance for 2017-18.

For the first time the companies are also required to report their financial flows to investors for 2017-18 – the data will cover the periods 2015-16, 2016-17, 2017-18 and an average for the three years. The reporting, Ofwat said, should cover all aspects of performance, including financial and operational performance.

Ofwat also wants the companies to set out in a “short, annual statement” how they are dproviding their services to customers and “how the company has set its aspirations.” Examples of where Ofwat said it sees value in clear explainations included:

  • how the board sets its ambitions and targets and how the company is performing against them, and

  • the relationship between its financial performance, executive rewards and delivery of services to its customers and how these impact future plans.