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Bespoke Performance Commitment Methodology (Ofwat Pro Forma) Wessex Water

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Bespoke Performance Commitment Methodology (Ofwat Pro Forma) Wessex Water Appendix 3.1.B – Bespoke performance commitment methodology (Ofwat pro forma) Wessex Water Appendix 3.1.B – Bespoke performance commitment methodology (Ofwat pro forma) Wessex Water September 2018 PR19 Business Plan September 2018 1 Appendix 3.1.B – Bespoke performance commitment methodology (Ofwat pro forma) Wessex Water Business plan section Supporting document Board vision and executive summary 1 Engaging customers 2 Addressing affordability and vulnerability 3.1 Performance commitment overview 3.2 Triangulation methodology 3.3 Cost benefit analysis – methodology and results Delivering outcomes for 3 3.4 Calculation of incentive rates including customers enhanced incentives 3.5 Inputs to RORE for outcome delivery incentives 3.6 Sharing success – Proposals for a Wessex Water community foundation 4 Securing long term resilience 5 Markets & innovation: wholesale 6 Markets & innovation: open systems & DPC 7 Markets & innovation: retail 8 Securing cost efficiency 9 Aligning risk and return 10 Financeability 11 Accounting for past delivery 12 Securing trust, confidence and assurance 13 Data tables and supporting commentaries PR19 Business Plan September 2018 2 Appendix 3.1.B – Bespoke performance commitment methodology (Ofwat pro forma) Wessex Water Table of contents Outcome A: Affordable bills ................................................................................. 5 Company performance commitment reference: Total bill reduction to customers on social tariffs per 10,000 properties .............................................................................. 5 Company performance commitment reference: Successful applications for assistance received by the independent advice sector/ third parties ............................................ 7 Company performance commitment reference: Void sites ........................................ 10 Company performance commitment reference: Gap sites ........................................ 12 Outcome C: Better relationships with customers and communities................... 14 Company performance commitment reference: Numbers of customers added to the Priority Services Register ......................................................................................... 14 Company performance commitment reference: Delivering for customers in vulnerable circumstances .......................................................................................................... 16 Company performance commitment reference: Number of children/students engaged ................................................................................................................................. 18 Outcome W: Efficient use of water .................................................................... 18 Company performance commitment reference: Customer reported leaks fixed within a day ........................................................................................................................... 19 Company performance commitment reference: Volume of water saved by water efficiency engagement .............................................................................................. 21 Outcome Q: Excellent drinking water quality ..................................................... 25 Company performance commitment reference: Water quality customer contacts (appearance) ............................................................................................................ 25 Company performance commitment reference: Tackling water quality at home and in the work place .......................................................................................................... 27 Company performance commitment reference: Lead communication pipes replaced (Wessex Water assets) ............................................................................................ 30 Company performance commitment reference: Event risk index (Wessex Water) (ERI WW) ......................................................................................................................... 32 Outcome F: Minimise sewer flooding ................................................................ 38 Company performance commitment reference: Customer property sewer flooding (external) .................................................................................................................. 38 Company performance commitment reference: Sewer flooding risk ......................... 41 Company performance commitment reference: North Bristol Sewer Scheme - Trym catchment ................................................................................................................. 46 PR19 Business Plan September 2018 3 Appendix 3.1.B – Bespoke performance commitment methodology (Ofwat pro forma) Wessex Water Outcome R: Resilient services .......................................................................... 48 Company performance commitment reference: Restrictions on water use (hosepipe bans) ........................................................................................................................ 48 Outcome E: Protecting and enhancing the environment ................................... 50 Company performance commitment reference: Abstraction Incentive Mechanism (Mere) ...................................................................................................................... 50 Company performance commitment reference: Natural capital: improve Sites of Special Scientific Interest (SSSI sites) ...................................................................... 52 Company performance commitment reference: Greenhouse gas emissions ............ 60 Company performance commitment reference: Working with the communities to improve bathing water experience ............................................................................ 63 Company performance commitment reference: Working with catchment partners to improve natural capital ............................................................................................. 67 Company performance commitment reference: Satisfactory sludge disposal .......... 72 Company performance commitment reference: Reduce frequent spilling overflows (non-WINEP) ............................................................................................................ 74 Company performance commitment reference: Length of river with improved water quality through WINEP delivery ................................................................................ 76 Company performance commitment reference: Km of river improved (non-WINEP). 80 Company performance commitment reference: Abstraction Incentive Mechanism (Stubhampton) .......................................................................................................... 87 PR19 Business Plan September 2018 4 Appendix 3.1.B – Bespoke performance commitment methodology (Ofwat pro forma) Wessex Water In this document we show changes made to our May submission by leaving track changes visible. Outcome A: Affordable bills Company performance commitment reference: Total bill reduction to customers on social tariffs per 10,000 properties Short definition Total bill reduction to customers receiving a social tariff, divided by the number of residential customers, expressed as £ per 10,000 households. Customer friendly definition: Reducing bills to help customers that can’t afford them. Measurement Necessary detail on £/10,000 measurement units households Frequency of PC measurement Annual and any use of averaging (financial year) Single or cumulative target Single Mitigation / exceptions None Any other information relating to the performance commitment The aim of the performance commitment is to incentivise the company to further increase the number of residential customers receiving financial support via social tariffs. Wessex Water was the first company to offer bill reductions to customers on the lowest incomes through win-win tariffs, and the first to offer social tariffs through the changes to legislation. We have well-established partnerships with a network of trusted affordability and vulnerability charities in our region to deliver ever increasing levels of support for vulnerable customers. We now offer three social tariffs, introduced with support from our customer base and stakeholders: • Assist, which provides large bill discounts to customers on the lowest incomes • WaterSure Plus, which provides an increased discount to customers with unavoidably high water use • Pension Credit, which provides an average 20% discount to customers of pensionable age but with no income other than the state pension. While we lead the industry in this area, we also recognise there are opportunities to further improve and provide support to greater numbers of customers in vulnerable circumstances. From our experience of providing assistance to customers’ for over a decade, we know that to make improvements to customers wellbeing, the offering of support needs to be meaningful. Our social tariffs have therefore been carefully crafted to provide a level of support to specific customer groups. We, and our expert advisors do not believe providing a PR19 Business Plan September 2018 5 Appendix 3.1.B – Bespoke performance commitment methodology (Ofwat pro forma) Wessex Water small discount to a large number of customers in our region would be a valuable policy objective. With the above in mind our Performance Commitment for social tariffs has been constructed in a way to incentivise the company to maximise
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