Multi-sector reservoir systems: Creating a usable commercial and legal model

Contract summary

Industry

• Business and management consultancy services - 79410000

Location of contract

London

Value of contract

£100,000

Procurement reference

PROC.01.0690a

Published date

12 October 2022

Closing date

27 August 2021

Closing time

12pm

Contract start date

11 October 2021

Contract end date

21 September 2022

Contract type

Service contract

Procedure type

Call-off from a framework agreement

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No

---

Description

Why RAPID, Anglian Water, Northumbrian Water Yorkshire Water and Water Resources East are working collaboratively on this project?
RAPID has established three working groups with fellow regulators and the industry to develop thinking on areas of the regulatory and commercial framework for strategic water resource solutions.
One of the areas being considered by the Pricing, Incentives and Risk Working group is how different commercial models can accommodate multi-sector and multi-party projects. The proposal to undertake this study was an interim output from the working group. The development of a commercial model which provides a template for future multi-sector solutions has benefits for all of the above Project Partners.
The Term of the Call-Off Contract will be for 6 months but it is envisaged that all work will be completed by around 3 months.
We would expect the organisation(s) appointed to carry out the work would submit the following outputs as part of this engagement:
• Desktop review of existing literature (including the documents listed above)
• Set out any precedents within or beyond the UK that could be drawn upon to assist the development of a viable commercial model for multi-sector water resource assets
• Carry out discussions with key stakeholders
• Use the outcomes of these discussions to host a number of workshops to develop, test, and iterate the model - we envisage these workshops would be split into different interest groups: different commercial users of the water assets created such as the energy sector or agriculture sector, those with an interest in water being retained in the environment, and those who may be interested in financing such multi-sector approaches
• Consider how the model would deal with different broad areas of benefits created, including where benefits conflict and risks borne: e.g. public water supply, other commercial interests, wider public or social value
• Consider how customers could benefit from additional value created by such approaches and protected for additional risks
• Consider the projected bill impact on current and future water company customers based upon a reasonable range of operational scenarios.
• Produce an Interim report - mid October 2021
• Produce a Draft Final Report for comment - November 2021
• Deliver a Final Report, in a publishable format - December 2021
The policy arguments in favour of a multi-sector approach are already well known, so the appointed organisation(s) would not need to rehearse these.

---

More information

Additional text

Please note an error occurred in that PROC.01.0690 was duplicated so an 'a' is added to differentiate contract award publication notice. However, the Invitation To Tender was stated as PROC.01.0690.

---

Award information

Awarded date

8 October 2021

Contract start date

11 October 2021

Contract end date

11 April 2022

Total value of contract

£100,000

This contract was awarded to 1 supplier.

CEPA LLP

---

About the buyer

Contact name

Lena Cluxton

Address

Centre City Tower
7 Hill Street
Birmingham
B5 4UA
England

Telephone

0121 644 7534

Email

mailbox@ofwat.gov.uk