Risk and Rewards - Balance of Risk

To address the challenges facing the water sector, we are considering a number of different regulatory design options in relation to the parts of the water value chain where an increased use of markets and/or competition may be more likely to be beneficial. To assist with developing the regulatory framework going forwards we will need to investigate the implications of potential reform for the balance of risk and reward.

The objectives of this contact are to answer two overarching questions:

1. What is the current balance of risk across the water and wastewater value chain?

2. How would these risks change if we made a greater use of markets in particular in relation to water resources and sludge?

We have divided the work into two phases. The work associated with Phase 2 is optional and will depend on the depth of coverage in Phase 1 and the potential benefits of additional work. Contractors do not necessarily need to make tenders for both Phase 1 and 2. If commissioned, the work associated with Phase 2 is likely to follow the work on Phase 1 but we are open to Contractor’s proposal (for example, if it is more cost effective and can be carried out in the same timescale as Phase 1).

Additional information: For further information, please contact: procurement@ofwat.gsi.gov.uk