Ofwat sets out its decisions for 2019/10 shadow operation of C-MeX and D-Mex

Ofwat has published a bank of documents* setting out its policy decisions and guidance for the shadow year of new customer experience incentive mechanisms C-MeX (for household customers) and D-MeX (for developer customers).

The shadow year will run from 1 May 2019 to 31 March 2020, and will provide an opportunity to: test outstanding issues ahead of the 2020-25 period; for water companies to make make any systems changes needed before financial incentives are applied from April 2020 onwards; and for Ofwat to make final adjustments to the schemes.

Ofwat will publish its decisions on the final design of each incentive as part of its PR19 final determinations in December 2019. Final guidance will be updated and published by March 2020, ahead of C-MeX and D-MeX becoming operational on 1 April 2020.

The decisions published last week follow pilot studies on each mechanism conducted by Navigator Research and its subcontractor Allto Consulting in 2018-19 (the details of which were also published, as separate documents) and input from stakeholder working groups.

*Selected sources: