DOCSLIB.ORG

Bristol Water Plc Report

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Bristol Water Plc Report Bristol Water plc A reference under section 12(3)(a) of the Water Industry Act 1991 Report Presented to Ofwat on 4 August 2010 Competition Commission 2010 Website: www.competition-commission.org.uk Members of the Competition Commission who conducted the determination Laura Carstensen (Chairman of the Group) Roger Davis Richard Farrant Professor Robin Mason Edward Smith Chief Executive and Secretary of the Competition Commission David Saunders Material has been omitted from the text of this report pursuant to section 15(6) of Water Industry Act 1991. Omissions are indicated by the insertion of the symbol [] in the text. iii Determination on a reference under section 12(3)(a) of the Water Industry Act 1991 Contents Page Summary .............................................................................................................................. 4 Findings ................................................................................................................................ 9 1. The reference ................................................................................................................ 9 2. Background ................................................................................................................... 9 Bristol Water .................................................................................................................. 9 Statutory framework ..................................................................................................... 11 The regulatory task ...................................................................................................... 12 Our approach ............................................................................................................... 13 An initial question on financeability and incentives ....................................................... 14 3. The capital investment programme of Bristol Water ..................................................... 15 Categories of capex and their appraisal ....................................................................... 15 Introduction to Bristol Water’s capex proposals............................................................ 16 Capital maintenance .................................................................................................... 17 Stable serviceability ................................................................................................. 17 Bristol Water’s proposals ......................................................................................... 17 Trunk mains relining scheme including Shipton Moyne to Tolldown ........................ 18 Mains renewal including the Axbridge–Barrow raw water main planned overlap programme ................................................................................................ 20 Purton raw water reservoirs ..................................................................................... 22 Chew Stoke ............................................................................................................. 23 The Asset Management Assessment process ......................................................... 24 Enhancement capex .................................................................................................... 27 Introduction ............................................................................................................. 27 Supply demand balance .......................................................................................... 28 Resilience schemes ..................................................................................................... 34 Applicable standard of resilience ............................................................................. 34 Bristol Water’s proposals ......................................................................................... 35 Durdham Down ....................................................................................................... 35 Southern Resilience scheme ................................................................................... 36 Oldford resilience scheme ....................................................................................... 37 Tetbury resilience scheme ....................................................................................... 37 Victoria pumping station .......................................................................................... 38 Quality enhancement expenditure ............................................................................... 38 4. Construction output price index and capex efficiency ................................................... 39 Construction output price index .................................................................................... 39 Capex efficiency .......................................................................................................... 41 5. Capital Incentive Scheme ............................................................................................ 42 The scheme ................................................................................................................. 42 The parties’ views ........................................................................................................ 42 Assessment and finding ............................................................................................... 43 6. Opex ............................................................................................................................ 44 Introduction .................................................................................................................. 44 Test for adjusting opex ............................................................................................ 45 Test for an NI ........................................................................................................... 46 Pension-related items .................................................................................................. 48 Deficit recovery payments ....................................................................................... 48 Ongoing contributions to defined benefit schemes .................................................. 49 1 Pension Act obligations with regard to defined contribution scheme ........................ 50 Error in pensions base opex .................................................................................... 50 Bad debts .................................................................................................................... 51 Opex adjustment ..................................................................................................... 51 NI ............................................................................................................................ 52 Energy costs ................................................................................................................ 53 Energy adjustment to base opex ............................................................................. 53 Energy NI ................................................................................................................ 53 Training costs .............................................................................................................. 54 Abstraction charges ..................................................................................................... 55 Highways Agency inspection costs .............................................................................. 55 Changes to water efficiency targets ............................................................................. 55 Adjustment to base opex ............................................................................................. 56 Enhancement opex ...................................................................................................... 56 7. Opex efficiency ............................................................................................................ 57 Ofwat’s opex efficiency targets .................................................................................... 57 Bristol Water’s objections ............................................................................................. 57 Finding ......................................................................................................................... 58 Base opex ............................................................................................................... 58 Enhancement opex.................................................................................................. 59 8. Other issues ................................................................................................................ 60 Tax changes ................................................................................................................ 60 Depreciation ................................................................................................................ 60 MEA revaluation ...................................................................................................... 61 Depreciation cross-check ........................................................................................ 61 Shortfall ....................................................................................................................... 62 Revenue .....................................................................................................................
Load more

Recommended publications
  • Your Charges Explained 2019-20 Contents Introduction
    Your charges explained 2019-20 Contents Introduction Each year we set our charges according to price limits that are determined by Introduction 1 Ofwat every five years. Prices were set for the period between 2015-2020 following reviews that started in 2014. Charges 2019-20 2 This leaflet explains more about Ofwat’s price limits, how you are charged and How you are charged 3 where the money goes. Metered customers 4 Charges for Bristol Water and Wessex Water are collected by Bristol Wessex Billing Services Limited (BWBSL). Unmetered customers 6 Charges applicable from 1 April are published on company websites early in Where your money goes 8 February. Visit bristolwater.co.uk or wessexwater.co.uk or call 0345 600 3 600 (Monday to Friday, 8am to 8pm; Saturday, 8am to 2pm). Common questions 10 Further information about charges is also available from our regulator Do you qualify for the surface www.ofwat.gov.uk water rebate 12 1 Charges 2019-20 How you are charged Our charges from 1 April 2019 to 31 March 2020 are shown below. Charges for water and sewerage The difference between Metered charges Bristol Water Wessex Water services are either based on how metered and unmetered Water supply much water you use (metered charge) charges or the rateable value (RV) of your Standing charge per annum £41.00 - property (unmetered charge). We make sure that the difference Since 1991, meters have been between metered and unmetered bills Charge per cubic metre £1.3328 - installed in all newly built properties, reflects the difference in the cost of and Bristol Water’s aim is that all providing these services.
    [Show full text]
  • Recreation 2020-21
    Conservation access and recreation 2020-21 wessexwater.co.uk Contents About Wessex Water 1 Our commitment 2 Our duties 2 Our land 3 Delivering our duties 3 Conservation land management 4 A catchment-based approach 10 Engineering and sustainable delivery 12 Eel improvements 13 Invasive non-native species 14 Access and recreation 15 Fishing 17 Partners Programme 18 Water Force 21 Photo: Henley Spiers Henley Photo: Beaver dam – see 'Nature’s engineers' page 7 About Wessex Water Wessex Water is one of 10 regional water and sewerage companies in England and About 80% of the water we supply comes from groundwater sources in Wiltshire Wales. We provide sewerage services to an area of the south west of England that and Dorset. The remaining 20% comes from surface water reservoirs which are includes Dorset, Somerset, Bristol, most of Wiltshire, and parts of Gloucestershire, filled by rainfall and runoff from the catchment. We work in partnership with Hampshire and Devon. Within our region, Bristol Water, Bournemouth Water and organisations and individuals across our region to protect and restore the water Cholderton and District Water Company also supply customers with water. environment as a part of the catchment based approach (CaBA). We work with all the catchment partnerships in the region and host two catchment partnerships, Bristol What area does Wessex Water cover? Avon and Poole Harbour, and co-host the Stour catchment initiative with the Dorset Wildlife Trust. our region our catchments Stroud 8 Cotswold South Gloucestershire Bristol Wessex
    [Show full text]
  • Bristol Water Wholesale Charges 2021/22
    Schedule of Wholesale Charges 1 April 2021 to 31 March 2022 It’s what we’re made of. Bristol Water Wholesale Charges Schedule 2021/22 Contents 1 Introduction ........................................................................................................ 3 2 General Information ........................................................................................... 3 3 Unmeasured Water – Household Customers ..................................................... 5 4 Measured Water - Household Customers ........................................................... 6 5 Measured Water - Non-Household Customers ................................................... 7 6 Unmeasured Water – Non-Household Customers .............................................. 8 7 Special Agreement Tariffs .................................................................................. 9 8 Non-Potable Supplies....................................................................................... 10 9 Methods of Charging ........................................................................................ 11 10 Switching to Measured Charges ....................................................................... 13 11 Non- Primary Services and Charges for Retailers ............................................ 14 12 Bulk Supply Charges for New Appointment and Variations (NAVs) .................. 20 13 Contact Details ................................................................................................. 24 Appendix One – Bristol Water Area of
    [Show full text]
  • West of England Strategic Economic Plan 2015-2030 01 Contents
    WE ARE A PARTNERSHIP FOR GROWTH EMBRACING GROWTH DEAL NEGOTIATIONS FOR 2015-2021 WEST OF ENGLAND STRATEGIC ECONOMIC PLAN 2015-2030 01 CONTENTS Curriculum Vitae: Knowledge, Innovation, Quality of Life 03 Forewords by James Dyson and Colin Skellett 04 1 The West of England Strategic Economic Plan 06 2 The City Region of Choice for a sustainable future 18 3 Economic Strategy 24 4 Local Growth Fund Deal Negotiations 31 5 Using our Levers of Growth 62 5.1 People – Knowledge Economy, Skills & Social Inclusion 63 5.2 Place & Infrastructure 70 5.3 Investment & Promotion 78 5.4 SME Business Support 82 6 Implementation Plan 88 7 Delivery Plan 96 8 Evaluation Plan 106 Appendices 112 Appendix 1: Six Year Plan for the Local Growth Fund 114 Appendix 2: FE Capital Projects – a breakdown of individual proposals 116 Appendix 3: Deadweight and displacement calculations 118 Appendix 4: Pipeline of interventions for the Local Growth Fund 120 3-6 year programme Appendix 5: The Process to identify Interventions for the 124 Local Growth Fund Appendix 6: Shared Priority Investment Maps & Key 126 Appendix 7: Full Business Case Template 138 Technical Supporting Documents available on the LEP website: www.westofenglandlep.co.uk/strategicplan 1 Outline Business Cases for the Local Growth Fund current 2 year programme 2 LEP Sector Prospectus 3 Equality Impact Assessment CuRRICULUM VITAE: KNOWLEDGE, INNOVATION, QUALITY OF LIFE 02|03 CuRRICULUM VITAE KNOWLEDGE, INNOVATION, QUALITY OF LIFE • Over one million people and growing Knowledge Quality of Life • An economy worth
    [Show full text]
  • Notice of Poll
    NOTICE OF POLL North Somerset Election of a District Councillor for Backwell Notice is hereby given that: 1. A poll for the election of a District Councillor for Backwell will be held on Thursday 7 May 2015, between the hours of 7:00 am and 10:00 pm. 2. The number of District Councillors to be elected is one. 3. The names, home addresses and descriptions of the Candidates remaining validly nominated for election and the names of all persons signing the Candidates nomination paper are as follows: Names of Signatories Name of Candidate Home Address Description (if any) Proposers(+), Seconders(++) & Assentors BARCLAY 30 Station Road, The Conservative Party N W Lee (+) C E Hatcher (++) Karen Margaret Backwell, North Candidate Graham J Bowerman M E Bowerman Somerset, BS48 3NH Rich Barclay Mary Lee R Taylor Geoffrey E Wells Valerie M Wells K Gaunt CRAWFORD 2 Castle Close, Flax Liberal Democrats Michael Phillis (+) C Edwards (++) Alison Catherine Sarah Bourton, Bristol, Jane F Canning Martin S Canning BS48 3RG E A Wilson S Round Andrew N Round T Knight Anne R Nelson Louise Tolson 4. The situation of Polling Stations and the description of persons entitled to vote thereat are as follows: Station Ranges of electoral register numbers of Situation of Polling Station Number persons entitled to vote thereat Backwell Parish Hall, Station Road, Backwell 1 NAA-1 to NAA-1777 Backwell Parish Hall, Station Road, Backwell 2 NAA-1778 to NAA-3539 Felton Village Hall (Main Hall), West Lane, Felton 3 NAB-1 to NAB-272/1 5. Where contested this poll is taken together with the election of Parish Councillors and the election of a Member of Parliament for the North Somerset Constituency.
    [Show full text]
  • Debt Recovery
    Debt recovery We want to help As a Bristol Water and Wessex Water customer, you are entitled to a high level of service from us and our billing company Bristol Wessex Billing Services Limited (BWBSL). In return, we ask you to pay for your water and sewerage services promptly. This leaflet forms part of our core customer information and explains how we can help if you are finding it difficult to afford to pay your water bill. It also explains the action we will take if you do not pay your bill or payment plan, or do not pay on time. We will either: • take legal action, which means you will incur additional costs and it may affect your credit rating or • send your account to a debt collection agency or • apply for payments to be deducted from any benefits you receive. 111 Page 1 of 6 Ways to pay your bill To make it easier to pay your bill, we offer the following options free of charge: • Direct Debit – the easiest way to pay your bill. If you don’t have a meter, you can pay annually, twice yearly, or in monthly payments. If you have a meter, you can pay monthly on a budget plan or on receipt of your bill. There is no charge or discount. Visit bristolwater.co.uk/directdebit or wessexwater.co.uk/directdebit • at your bank – please take your bill with cash or a cheque made payable to BWBSL. Normally no fee is payable at your own bank • internet/mobile banking – payments should be made to Bristol Wessex Billing Services Ltd, please quote sort code 40-02-50 and account number 61229737* • online – you can pay online with a debit card or credit card at bristolwater.co.uk or wessexwater.co.uk/paynow • at any Payzone outlet – please take your bill and payment in cash to a local Payzone outlet.
    [Show full text]
  • Charges Explained Contents
    About your bill Your charges explained Contents Introduction 1 Charges 20201-22 2 How you are charged 3 Metered customers 4 Unmetered customers 6 Where your money goes 8 Common questions 10 Do you qualify for the surface water rebate 12 Introduction Each year we set our charges according to price limits that are determined by Ofwat every five years. Prices were set for the period between 2020-2025 following reviews that started in 2019. This leaflet explains more about Ofwat’s price limits, how you are charged and where the money goes. Charges for Bristol Water and Wessex Water are collected by Bristol Wessex Billing Services Limited (BWBSL). Charges applicable from 1 April are published on company websites early in February. Visit bristolwater.co.uk or wessexwater.co.uk or call 0345 600 3 600 (Monday to Friday, 8am to 8pm; Saturday, 8am to 2pm). Further information about charges is also available from our regulator www.ofwat.gov.uk 1 Charges 2021-22 Our charges from 1 April 2021 to 31 March 2022 are shown below. Metered charges Bristol Water Wessex Water Water supply Standing charge per annum £43.40 - Charge per cubic metre £1.2898 - Sewerage Standing charge per annum - £56 Abated standing charge per annum* - £35 Charge per cubic metre - £1.6836 WaterSure Plus Water supply charge per annum £171 - Sewerage charge per annum - £198 Unmetered charges Bristol Water Wessex Water Water supply Standing charge per annum £34 - Poundage charge per £ of RV £1.0897 - Sewerage Standing charge per annum - £7 Poundage charge per £ of RV - - Full - £1.5445 Abated poundage charge** - £1.4200 Surface water and highway drainage - £47 only charge per annum * the abated standing charge is payable where no part of the property is connected for surface water drainage.
    [Show full text]
  • Thames Water.48 This Is a Pricing Impact That Demonstrates the Commitment to Sustainable Performance
    Water Infrastructure Thames Water Utilities Limited: The Business Case of a Regulated Utility CASE (A) The Business Case for Sustainable Infrastructure Prof. S.N. Pollalis, E. Hagistavrou The Zofnass Program at Harvard April 15, 2019 Contents Part 1: Introduction ......................................................................................................................... 3 A water company’s singular nature of business .................................................................... 3 What it means to be a private utility .................................................................................... 3 The UK water sector and Thames Water Utilities Ltd ........................................................... 4 Part 2: The UK privatized water sector ........................................................................................... 6 Privatization of the water and wastewater sectors in the UK ............................................... 6 What privatization has delivered so far ................................................................................ 6 UK water sector’s risk profile ................................................................................................ 7 Part 3: The UK regulatory framework ............................................................................................. 7 Overview ............................................................................................................................... 7 Regulatory toolkit for risk and reward management
    [Show full text]
  • Barrow Gurney Conservation Area.Pdf [1.47
    Barrow Gurney Conservation Area Adopted 26 th June 2018 Table of Contents 1. Introduction ............................................................................................... 3 2. Planning Policy Context............................................................................ 3 2.1 National Policy .................................................................................... 3 2.2 Local Policy ......................................................................................... 3 3. Planning Permission ................................................................................. 4 3.1 Works To Trees .................................................................................. 4 4. Summary of Special Interest .................................................................... 5 5. Context and Development ........................................................................ 5 5.1 Location and Context .......................................................................... 5 5.2 Landscape Setting .............................................................................. 6 6. Conservation Area Boundary ................................................................... 6 7. Historical Development and Archaeology ................................................. 7 7.1 Historical Development ....................................................................... 7 7.2 Archaeology ...................................................................................... 10 8. Special Charterer of the Conservation
    [Show full text]
  • CCW's Response to the Competition and Markets Authority About Bristol
    CCW’s response to the Competition and Markets Authority about Bristol Water’s statement of case in its request for a redetermination of its 2019 Ofwat Final Determination 1 Date: 11 May 2020 CCW submission to the Competition and Markets Authority (CMA) on Bristol Water’s statement of case 1. Introduction 1.1 The Consumer Council for Water (CCW) is the statutory consumer organisation representing household and non-household water and sewerage consumers in England and Wales. We welcome the opportunity to submit our views to the Competition and Markets Authority (CMA) on Bristol Water’s appeal against Ofwat’s Final Determination (FD). 1.2 We draw our views and opinions from a range of sources/evidence: Daily contact with hundreds of water customers who contact us for advice and support. A programme of research that engages customers so we can understand their views, including longitudinal tracking studies of both household and non-household customers, and recently an online panel of customers. Data which water companies are required to share with us relating to their own handling of customer complaints and their own performance on a range of key measures. An independent view of the Weighted Average Cost of Capital (WaCC) and a report on water companies’ financial performance. Regular contact, through our teams and our Board members, with every water company, following structured agendas to understand their work. Active membership of the Customer Challenge Groups that each water company is required to maintain as part of the price review process. Playing a major role in the sector-wide arrangements for policy and strategy making across England & Wales.
    [Show full text]
  • 80}'1 ERSETSHIRE. SLA 619 Steeds E
    TRADES DIRECTORY.] 80}'1 ERSETSHIRE. SLA 619 Steeds E. Gurney Slade, Ashwick, Bath Vickery Mrs. Mary, Watchet R.S.O Withers Robert, Stoke Rodney, Weston- StevensG.Brompton regis,Dulvrtn.R.SO Vigar Daniel, West end, Bruton, Bath super-Mare Stevens James, Tatworth, Chard Vincent Gilbert, 12 Portland st. Tauntn Wittington William, Newton St. Loe, StevensJohn,LangfordBudville,Wellngtn Vincent John, jun. Post office, Bishop's Saltford R.S.O Stevens John, Springfield rd.Wellington Wood, Chard Wood James, Mill st. Castle Cary, Bath Stevens William, Tatworth, Chard VincentJohn Frederick,I Unionst.Wells Wood John, Nynehead, Wellington Stinner John, Highbridge R.S.O Vincent John Waiter, Post office, Lower Wood Walt. Chilton Polden, Bridgwater Stone Henry, North street, Wellington Weare, Axbridge R.S.O Wood William, 38 Silver street, Taunton Stone Robert, Buckland St. Mary, Chard Vining Mrs. Henry, Batcombe, Bath Woodland J.~tocklinch,Ottersay,llmnstr Stone Thomas, Waterow, Chipstable, Virgin J. Norton-sub-Hamdon, Ilminster Woodland John, Hambridge, Taunton Wiveliscombe R.S.O Voake Miss Mary J. Walton, Bridgwater Woodman Benj. St. Mary st. Bridgwatr Stone William, Panborough, Wells Voizey H. HardingtonMandeville,Yeovil Woolley Mrs. Jonas, Dinder, Wells StookeMrs.Elizabeth,Chaffcombe,Chard Vowles Charles, Cross, Compton Bishop, Woolridge James, 5 Corn street, Bath Stride Arch. Stourton, Kilmington,Bath Axbridge R.S.O Wootten Noah, 12 Monmouth pl Bath Stroud Frederick, Crowcombe, Taunton WadeMrs.J.Weston-in-Gordano,Clevedn Wright Mrs. T. Compton, Somerton Stuart Mrs. Ellen, White Cross street, Walker Joseph, High st. Weston, Bath Wyatt Wm. Charlton, Kilmersdon, Bath Weston-super-Mare Wall George, Bagley, Cheddar R.S.O Yates William, Barrow Gurney, Bristol Stuckey Sl.
    [Show full text]
  • Bristol Water
    Our Ref OFWATCOD0916KDH email [email protected] Your Ref Tel 0117 9341049 Cost of debt consultation Water 2020 Ofwat 21 Bloomsbury Street London WC1B 3HF By email: [email protected] 17th October 2016 Dear Ofwat, Thank you for the opportunity to comment on the Water2020: consultation on the approach to the cost of debt for PR19. Bristol Water welcomes the early opportunity to provide our views on Ofwat’s emerging thinking on the cost of debt indexation and other finance-ability issues in the process of setting the PR19 methodology. We broadly agree with Ofwat’s emerging thinking that the indexing of debt should be placed on new issuance only and existing debt should continue with a fixed allowance approach. We look forward to the emergence of the further detail on the actual index and the approach to be used as these will be the main determining factors of whether the mechanism is appropriate. We are also supportive of the continued use of notional industry capital structures with continued additional recognition of industry structural asymmetries. With regards to the application of risk reward mechanisms we believe that it is important that Ofwat are clear early in the PR19 process on its expectations of where the boundary between industry common mechanisms and company specific mechanisms should apply. In PR14 companies, in consultation with their customers, have proposed and have implemented a number of risk/reward sharing mechanisms ranging from an overall RORE approach to specific mechanisms for individual components of the business plan (e.g. Cost of Debt).
    [Show full text]