PR19 Reconciliation Rulebook consultation - reconciliation model guidance
| Date | 04 March 2020 |
March 2020
www.ofwat.gov.uk
PR19 Reconciliation Rulebook
Consultation – reconciliation
model guidance
PR19 reconciliation rulebook consultation – reconciliation model guidance
1
About this document
This document provides a guide to the PR19 reconciliation models we propose to
use to calculate the reconciliations which will be required during, and at the end of,
the 2020-25 price control period.
It provides clarity on:
the purpose of the models;
policy decisions and background; and
inputs, outputs and calculations.
PR14 represented a significant evolution of Ofwat’s historical approach to
reconciliation of price controls. Our approach at PR19 reflects a further development
in how we undertake reconciliations, through:
additional and better targeted reconciliations, to ensure companies’ allowed
revenues are appropriate; and
more in-period reconciliations to ensure changes to allowed revenue are
undertaken in a more timely way.
The ‘PR19 reconciliation rulebook consultation – reconciliation model guidance’ is
part of a suite of complementary documents and spreadsheets which should be
considered together and comprises:
this document, the ‘PR19 reconciliation rulebook consultation – reconciliation
model guidance’ which contains detailed chapters on each reconciliation model
and the mechanics of how they work including inputs, outputs and calculations;
the ‘PR19 reconciliation rulebook consultation – proposed approach and policy’
which details our proposed approach and policy decisions relating to the
reconciliations that will be required during, and at the end of, the 2020-25 price
control period; and
a series of reconciliation models which demonstrate the practical operation of the
PR19 reconciliation mechanisms. These models are referred to throughout this
document.
This document is structured with a detailed chapter for each model which we will use
to reconcile companies’ performance over the 2020-25 period and also includes
details of reconciliations that are specific to individual companies. It should be read
alongside the PR19 reconciliation rulebook consultation – proposed approach and
policy document which provides an introduction and background to the reconciliation
PR19 reconciliation rulebook consultation – reconciliation model guidance
2
models, covers our overview and approach to implementing the reconciliation and
also discusses some of our policy decisions.
We ask for comments from stakeholders by 29 April 2020. We will publish our final
‘PR19 reconciliation rulebook – reconciliation model guidance’ by Autumn 2020 after
considering consultation responses.
To continue reading
Request your trial