The document discusses opportunities for catchment partnerships under the PR19 regulatory framework for water companies in the UK. It notes that PR19 provides unprecedented opportunities for ambitious catchment management due to drivers from regulators, customers, government, and partnerships. Specifically, it outlines opportunities around outcomes and performance commitments related to protecting the natural environment, as well as focus areas like resilience, innovation, long-term planning, customer participation, and generating multiple benefits. It advises catchment partnerships to understand the motivations of key players like Ofwat and customers, know the intervention points to influence business plans and goals, and aim high in their ambitions.

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Seizing the Opportunity
PR19, customer participation, ODIs and more
Nicci Russell, Managing Director, Waterwise
CABA workshops, 22nd and 26th June 2017

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MD of Waterwise – UK-wide water efficiency NGO
(Formerly of Ofwat…)

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What’s the context for water companies?
What does this mean for catchment partnerships?

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Unprecedented UK opportunity for
catchment management
high ambition

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Multiple drivers for innovation and ambition in catchment partnerships
From regulators
From customers
From government
From partnerships
From Brexit
From the bottom line

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Regulatory framework
Major on this
PR14 hooks and opportunity
PR19 hooks and opportunity

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PR14 hooks and opportunity
Major changes – all great for catchment partnerships
1. Outcomes – ODIs, PCs
http://www.ofwat.gov.uk/consultation/consultation-outcomes-framework-pr19/
2. Totex
3. Company ownership of plans (and Board sign-off)
4. Customers at the heart
5. Enhanced status

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Wholesale wastewater outcome D: The natural environment is protected and improved in the way we
deliver our services
Performance commitment S-D3: Contribution to rivers improved (wastewater programme)
The unit of measure for this PC is the equivalent river length improved to ‘good status’, measured in
kilometres, and reported cumulatively across 2015-20.
Incentive type: Financial – reward and penalty.
To calculate the PC, the number of river
length equivalents associated with the
schemes that have been formally
confirmed as complete in the year will be
summed.
Performance will be assessed and
reported on a financial year basis.
A cumulative net penalty or reward for all
the financial measures within a price
control will be calculated.
United Utilities final determination for PR14
http://www.ofwat.gov.uk/wp-content/uploads/2015/10/det_pr20141212uu.pdf

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14th June 2017

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PR19 hooks and opportunity

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Customers

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Resilience
@ofwat #resilienceintheround – includes ecosystem
‘Resilience is the ability to cope with, and recover from, disruption,
and anticipate trends and variability in order to maintain services for people
and protect the natural environment now and in the future.’
http://www.ofwat.gov.uk/publication/towards-resilience/
http://www.ofwat.gov.uk/publication/resilience-task-and-finish-group-final-report/

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Innovation

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Long-term focus and future customers
(NB link to bills…)

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Environment

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‘Customer participation’

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Partnerships

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Multiple benefits

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Last but not least
‘transformative plans’

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What's the opportunity from this for catchment partnerships?
Talk the talk
Know the motivations
Know the intervention points
Aim high and don’t give up

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1. Talk the talk – see final session
2. Know the motivations
Ofwat
Customers, customers, customers
Investors
Government
3. Know the intervention points
Influence outcomes in business plans
Customer Challenge Groups
Any time during the period, via ODIs and PCs
Blueprint for Water

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Greater opportunity for
catchment management now
than ever before
Aim high and don’t give up