Over the next couple of years we will be developing our business plan for 2020 to 2025. The plan will outline how we will deliver water and waste water services in a resilient and sustainable way. Whilst this may seem a long way off, future planning is a big part of what we do and we would like our customers and stakeholders to get involved in creating the plan.
To date, our customers have helped us better understand what services are of a priority to them, and what the future of water and waste water may look like. Customer and stakeholder participation in helping us prioritise and deliver our services to the region is vitally important to us.
Your Water Customer Community
Your Water is an online research community for Yorkshire Water customers.
By engaging with customers through the community, Yorkshire Water will be able to base major decisions on what customers want. Therefore, participants in the research will have the opportunity to shape the direction that Yorkshire Water takes over the next few years.
The community is expected to run until September 2018. Over the course of the community you will receive information about Yorkshire Water, and the water industry in general, which we would like you to read and consider.
As we progress through the community, Your Water members will be invited to participate in surveys, quick polls and discussions. All activities are optional – you do not have to complete every activity that we send you and you will only be sent the activities which we think are most relevant to you.
The more feedback you give, the more rewards you will be eligible for and the greater say you will have in Yorkshire Water’s future decision making!
Working with our regulator – consultation responses
The Water Services Regulation Authority, also known as Ofwat, is the water industry economic regulator.
As part of its role, Ofwat produces process and policy documents which they ask water companies to comment on. These are usually called consultations. We respond to these consultations to ensure that we contribute to how Ofwat’s policies are developed.
Our response to Ofwat’s PR19 methodology
The price review is a financial review process led by Ofwat.
Ofwat uses the price review to set the price, investment and service package that our customers receive, therefore controlling how much we can charge our customers for the services that we provide them.
As part of the price review process, we must submit a business plan that is assessed by Ofwat. The next price review will be held in 2019 (PR19) and we have already started planning for it. PR19 will set our price controls from 1st April 2020 to 31st March 2025.
PR19 will provide a resilient long-term future for water in Yorkshire. It will ensure that we provide more of what matters to our customers, at a price they can afford and are willing to pay for.
Ofwat published its draft methodology on 11 July 2017, inviting us and other water companies to respond to its proposals.
You can see our response to Ofwat’s PR19 draft methodology consultation in the documents below:
Yorkshire Forum for Water Customers response to Ofwat’s PR19 methodology
We are working with an independent Customer Challenge Group. Known as the Yorkshire Forum for Water Customers, the group are responsible for ensuring our customers’ views are fairly reflected in our business plan and ensure we are meeting the performance commitments we have made to customers.
The Yorkshire Forum for Water Customers has a key role in helping Ofwat, scrutinise our business plans.
As part of its role the Yorkshire Forum for Water Customers responded to Ofwat’s PR19 draft methodology consultation:
YW’s response to the economic asset valuation for the bioresources RCV allocation at PR19
This document is intended to inform interested parties how we have approached creating a bioresources price control.
Sludge is a by-product of the treatment of waste water. This sludge can be used to produce for example energy or compost. Sludge is no longer seen as a waste product but as a resource - a bioresource.
To enable a market to be developed for bioresources in England and Wales, Ofwat require all the water companies who treat sewage to categorise bioresource activities. This is achieved by separating out some of the overall value of the company (called regulatory capital value, RCV) into a bioresources area called a price control.
This is a summary of the document that we have sent to Ofwat and explains the approach that we have taken, using Ofwat’s guidance, to determine the bioresources RCV for YW.
Yorkshire Water’s economic asset valuation for the water resources RCV allocation at PR19
The 2019 Price Review (PR19) will see the introduction of a new separate binding price control on our revenues from water resources.
This document is intended to inform interested parties how we have approached creating a water resources price control.
Each water company has a single legacy Regulatory Capital Value (RCV) for its water assets, including its water resource assets. To determine the level of revenue that a company can recover as part of the new water resources price control, companies need to provide Ofwat with a proposed assessment of how much of the legacy RCV to allocate to the water resources price control.
This is a summary of the approach that we have taken to determine the water resource RCV for YW.