We have undertaken several assignments for Ofwat starting in 2008/09 when we worked on site with the regulator over a six month period developing options for the development of upstream competition in the provision of water, wastewater, sewerage and sludge services. This assignment included the development of potential market orientated approaches from first principles and then specifically targeting potential approaches to the specific characteristics of the water sector. Outputs included: internal discussion papers; detailed options papers; delivering Board workshops; assessment of the structural basis for competition; assessment of costs and benefits; and, input to the independent review on competition and innovation in water services the “Cave Review”.

We subsequently worked with Ofwat on specific aspects of potential upstream reforms:

  • we assisted Ofwat in assessing the issues relating to the interconnection of networks in utility sectors; and

  • we worked with Ofwat to examine implementation issues surrounding, for the introduction of a System Operation function in the water sector.