Published date: 3 January 2017

Awarded contract - This means that the contract has been awarded to a supplier.


Closing: 30 November 2016

Contract summary

Industry

  • Business and management consultancy and related services - 79400000

Location of contract

West Midlands, London

Value of contract

£106,560

Procurement reference

PROC.01.0540

Published date

3 January 2017

Closing date

30 November 2016

Contract start date

13 December 2016

Contract end date

31 March 2017

Contract type

Service contract

Procedure type

Other:

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No


Description

Introduction

The vast majority of residential and business customers in England and Wales obtain their water and wastewater services from one of the regional monopoly Water and Sewerage Companies (WASCs) or Water only Companies (WOCs). While Ofwat has developed a regulatory approach to introduce a degree of "comparative" competition between companies, direct competition has been limited to date.

Study objectives

The study will involve a comprehensive examination of the NAV market to see if it is working for customers and consumers generally; to identify any areas that may require attention; and to identify potential options on how we might make the market work better.

In particular, the study will:
• Investigate how the NAV market is working and what it has delivered to date.
• Consider the role that NAVs play within the sector - and how this might be affected by the changes to the wider competitive and regulatory landscape.
• Investigate whether there are any features of the market which may be having the effect of preventing, restricting or distorting competition.
• Benchmark the NAV regime against comparative arrangements in other utility sectors.
• Set out options for addressing any issues or concerns identified and the extent to which current and planned initiatives and policy developments are capable of addressing any issues highlighted.

In addition, the study should also:
• Inform the development of policy areas we already planned to look at e.g. in relation to NAV-specific bulk supply pricing, NAVs setting wholesale charges.
• To highlight learning for the introduction of competition within the sector more generally.

Key Outputs and Deliverables

Interim report and identification of options to address any issues highlighted.

Draft report
A draft report should be produced my mid-March 2017. Earlier versions can be shared and discussed prior to this. We may request that the draft report be presented to a group of Ofwat colleagues.

Final Report
A final report should be produced no later than end March 2017.
This should be in a form that can be published.


More information

Attachments


Award information

Awarded date

12 December 2016

Contract start date

13 December 2016

Contract end date

31 March 2017

Total value of contract

£106,560

This contract was awarded to 1 supplier.

Frontier Economics Ltd

Address

Mid City Place
71 High Holborn
London
WC1V 6DA

Reference

None

Supplier is SME?

No

Supplier is VCSE?

No


About the buyer

Address

Centre City Tower
7 Hill Street
Birmingham
B5 4UA
England

Email

mailbox@ofwat.gsi.gov.uk