RAPID issues Gate 2 guidance for water resource schemes

RAPID has published guidance for water companies hoping to progress strategic water resource schemes through Gate 2.

The guidance describes the process that will be used and RAPID’s expectations of solutions at the gate including the evidence that should be included with submissions; how solutions will be assessed; and how new solutions joining the process will be treated.

RAPID set out that it will make recommendations to Ofwat based on its assessment of each solution on the following points:

• completeness and quality of work;

• the level of delivery incentive penalty, if appropriate, that should apply in the light of the quality and completeness of the evidence (up to 30% of each company’s total efficient spend);

• whether expenditure has been allocated to the solution in line with the PR19 final determination and whether there is evidence this has been incurred efficiently;

• whether the solution (and which of its options) should progress through the gated process and whether there should be any adjustment to its allowance;

• whether there should be any change to solution partnering arrangements; and

• confirmation of subsequent gate activities for the solution.

Gate 2 submissions are due to RAPID by 14 November 2022. Draft decisions are due by 1 March 2023, and final decisions by 7 June 2023.