Blind year fortunes vary
Ofwat is consulting until 19 October on draft "blind year" adjustments which reconcile the forecasts of 2019-20 company performance with actual 2019-20 performance data.
As the table (left) shows, companies’ performance in 2019-20 compared to their forecast performance varies, with some doing better than expected and some not as well. Ofwat said this process is important, given the rewards and penalties attached to some aspects of performance, to “ensure that customers only pay for the service standards that they receive.”
In a small number of cases, Ofwat proposed interventions to the adjustments suggested by companies to ensure that the blind year adjustments are appropriate. The majority of the interventions relate to Performance Commitments and associated Outcome Delivery Incentives.
Final adjustments are expected by 13 November.