Business Plan legacy submission

As part of our business plan for 2020-25, on the 27 July we provided information to Ofwat on our actual and forecast performance in the period 2015-20.

This was to enable Ofwat to calculate any rewards or penalties that should be applied between 2020-25 to reflect our performance in the previous five year period.

The July submission included a number of Ofwat models, used to calculate these rewards and penalties. These are:

Totex menu PR14 reconciliation

This compares our actual expenditure for the period 2015-20 with that Ofwat assumed we would spend when it set our price controls in 2014. Where we spend less that the amount assumed because we have delivered more efficiently, a proportion of this is given back to customers through bill reductions (and vice versa).


WRFIM PR14 reconciliation

This model compares the income that we actually received from customers for water and sewerage services with how much we forecast we would get when we set our prices. To ensure we set prices appropriately, Ofwat impose a penalty, which reduces customer bills, if our forecasts are more than 2% higher or lower than the actual amounts billed.


Household retail PR14 reconciliation spreadsheet

This model compares the actual income from retail charges with the forecast made when we set prices. An adjustment is made to correct for any under or over-forecast in the number of customers.


RCV adjustments feeder model and revenue adjustments feeder model

These two models take the output from the other reconciliation models and calculate the necessary adjustments to the Regulatory Capital Value, which is the measure of capital investment used in setting prices, and to the revenues we are allowed to collect from our customers through their bills.


Additional data tables

In addition to data associated with these models we provided Ofwat with information on a number of other areas of performance, including how we performed against our service delivery targets and any associated financial rewards or penalties, and whether we sold any land.

Copies of these tables are available below along with accompanying commentary on the data.