Ofwat updates guidance on Price Control Deliverables for PR24

Ofwat has published further guidance on how Price Control Deliverables (PCDs) will work at PR24.

The new mechanism will set out the key outcomes or outputs from enhancement expenditure, so that stakeholders and customers know what to expect from the funding provided. Ofwat said companies should use PCDs where investment is material, and the delivery of benefits cannot be easily or directly linked, or the costs fully covered, by performance commitments and outcome delivery incentives. PCDs will set out: the outcomes or outputs expected to be delivered from enhancement and related expenditure; the expected timing of delivery of these outcomes or outputs; and the payments to customers if these outcomes or outputs are not delivered on time.

The guidance covered where Ofwat expects PCDs to apply; how these should be structured; types of deliverables, including specific guidance on the key areas of supply side improvements, leakage, metering, nutrient removal and storm overflows; payments; and other issues.