PR24 and beyond: Final guidance on long-term delivery strategies
| Date | 06 April 2022 |
April 2022
PR24 and beyond: Final guidance on
long-term delivery strategies
PR24 and beyond: Final guidance on long-term delivery strategies
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About this document
This document sets out our final guidance on long-term delivery strategies at PR24. This
follows our discussion paper in November 2021.
To help make the right decisions for the long term, water companies should set out their five-
year business plans in the context of a 25-year long-term delivery strategy. These strategies
will outline the long-term outcomes the company aims to deliver, and how they will deliver
them in a range of plausible futures.
This document outlines our requirements for what companies should include in their
strategies at PR24. This includes using adaptive pathways planning to present the strategies,
using future scenarios to test and develop the adaptive pathways, and providing evidence
that the strategy represents the best way to meet long-term objectives. We also respond to
company and stakeholder feedback on our discussion paper.
PR24 and beyond: Final guidance on long-term delivery strategies
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Contents
1. Executive summary 4
1.1 Requirements for long-term delivery strategies 4
1.2 Scenario testing 7
2. Introduction 10
3. Requirements for long-term delivery strategies 13
3.1 Customer engagement 13
3.2 Ambition: where will the company be in 25 years? 14
3.3 Strategy: how will the company get there? 16
3.4 Rationale: why is the strategy the best way of getting there? 26
3.5 Foundation: what is underpinning the strategy? 30
3.6 Board assurance 32
4. Scenario testing 34
4.1 Combining scenarios 34
4.2 Common reference scenarios 35
4.3 Wider scenario testing 44
5. Future long-term delivery strategies 46
A1 Responses to our discussion paper 47
A1.1 Key changes from our discussion paper 47
A1.2 Approach to long-term delivery strategies 48
A1.3 Requirements for long-term delivery strategies 49
A1.4 Scenario testing 56
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