Serviceability

Serviceability Methodologies

Reference: 12/RG/01/4
ISBN: 1 84057 620 0
Published Date: 27/02/2012

Stable serviceability has been Ofwat's requirement for capital maintenance expenditure set at periodic reviews for water companies in England and Wales. This report reviews the purpose of serviceability, how it has evolved over recent periodic reviews, and stakeholder views on its effectiveness. The report also looks at approaches adopted in other sectors and jurisdictions (both in UK and internationally) and it considers the impact of Ofwat's emerging approach to future regulation. Taking account of the review's findings, the report recommends refocusing serviceability from asset capability to service risk outcomes. It makes proposals for a self-assessment framework intended to give companies greater ownership of serviceability and freedom to define indicators, including indicators of service risk, network capacity, and critical asset condition. A role for stakeholder groups in challenging serviceability outcomes is proposed and a continuing need for assurance of serviceability is identified.

Price: £10  

Appendix A Evolution of serviceability indicators from AMP2-AMP5

Reference: 12/RG/01/4
ISBN: 1 84057 620 0
Published Date: 27/02/2012

Stable serviceability has been Ofwat's requirement for capital maintenance expenditure set at periodic reviews for water companies in England and Wales. This report reviews the purpose of serviceability, how it has evolved over recent periodic reviews, and stakeholder views on its effectiveness. The report also looks at approaches adopted in other sectors and jurisdictions (both in UK and internationally) and it considers the impact of Ofwat's emerging approach to future regulation. Taking account of the review's findings, the report recommends refocusing serviceability from asset capability to service risk outcomes. It makes proposals for a self-assessment framework intended to give companies greater ownership of serviceability and freedom to define indicators, including indicators of service risk, network capacity, and critical asset condition. A role for stakeholder groups in challenging serviceability outcomes is proposed and a continuing need for assurance of serviceability is identified.

Price: £10  

Appendix B Summary of meetings with CCWater, DWI, EA and Ofwat

Reference: 12/RG/01/4
ISBN: 1 84057 620 0
Published Date: 27/02/2012

Stable serviceability has been Ofwat's requirement for capital maintenance expenditure set at periodic reviews for water companies in England and Wales. This report reviews the purpose of serviceability, how it has evolved over recent periodic reviews, and stakeholder views on its effectiveness. The report also looks at approaches adopted in other sectors and jurisdictions (both in UK and internationally) and it considers the impact of Ofwat's emerging approach to future regulation. Taking account of the review's findings, the report recommends refocusing serviceability from asset capability to service risk outcomes. It makes proposals for a self-assessment framework intended to give companies greater ownership of serviceability and freedom to define indicators, including indicators of service risk, network capacity, and critical asset condition. A role for stakeholder groups in challenging serviceability outcomes is proposed and a continuing need for assurance of serviceability is identified.

Price: £10