PR19 - Initial Assessment of the Cost of Capital

Contract summary

Industry

• Business and management consultancy services - 79410000

Location of contract

West Midlands, London

Value of contract

£0 to £125,000

Procurement reference

PROC.01.0562

Published date

19 October 2017

Closing date

19 June 2017

Contract start date

12 July 2017

Contract end date

30 November 2017

Contract type

Service contract

Procedure type

Call-off from a framework agreement

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No

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Description

We are in the process of developing our methodology for Price Review (PR19), building on the decisions we made in May 2016 on Water 2020. We plan to consult on our methodology in July 2017, and to finalise our methodology in December 2017.

Our learning from PR14 has highlighted the need to provide upfront guidance to companies on our expectations for the cost of capital. At PR14 companies submitted a wide range in their own estimates as part of their business plans. We did not consider this led to an efficient process, so we plan to provide more guidance to better inform companies' submissions and the discussions they have with their customers in preparing their business plans.
The objective of this work is to provide us with an estimate of the cost of capital. We plan to publish this alongside the final methodology in December 2017.

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More information

Attachments

• 20171009 PROC 01.0562 Signed by both parties_Redacted.pdf
• Signed contract
• Contract

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Award information

Awarded date

7 July 2017

Contract start date

12 July 2017

Contract end date

30 November 2017

Total value of contract

£125,000

This contract was awarded to 1 supplier.

Europe Economics

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About the buyer

Address

Centre City Tower
7 Hill Street
Birmingham
B5 4UA
England

Email

mailbox@ofwat.gsi.gov.uk