Independent PCD assurance

Independent assurance service to ensure compliance.

As water companies continue to prepare for AMP8, Ofwat is beginning to set Price Control Deliverables (PCDs) as part of the final determination process. As companies start to mobilise teams and projects for the new AMP they must also consider how governance and reporting structures will be put in place to allow collection of the information required to demonstrate compliance with the new regulatory framework.

Ofwat requires all companies to publish an independently assured report on progress against delivery plan in July of each year. This report should set out progress against PCD targets and interim milestones.

What are Price Control Deliverables?

Price control deliverables (PCDs) are regulatory tools designed to ensure water companies meet specific improvement targets funded through enhancement expenditure allowances.

If companies fail to deliver these outcomes, they must return the funding to customers.

PCDs enhance regulatory oversight, protect customers from non-delivery, and incentivise timely completion of projects.

Introduced in the 2019 price review as scheme-specific performance commitments, PCDs are also employed in other sectors like energy.

The detailed approach to PCDs is outlined in PR24 draft determinations, with specific requirements detailed in associated documentation for various water-related enhancements.

How we can help

Through our independent assurance service, we can help you ensure the evidence is in place to reduce the risk of non-compliance, regulatory penalties, and loss of stakeholder trust. We give you the confidence that your reported data is accurate, complete, and that your delivery is aligned to Ofwat’s expectations.

First line

Helping you set up controls to ensure the right data is collected to demonstrate compliance with PCDS, this may include

Schedule performance / productivity forecast
Cost performance / expenditure analysis
Engineering policy compliance and best practice
Investment category analysis

Second line

Working a specialist in the water sector to challenge and support the development of PCD compliant projects:

Investment committee oversight
Engineering policy
Programme governance and project sponsorship
Project and commercial procedures

Third line

Providing independent assurance and confidence
Factual assessment and recommendations

Capability

As part of our PCD support, we will provide you with a named lead assurer with appropriate experience and qualifications who will be responsible for overall assurance sign off. All our technical specialist assessors are senior individuals in the business, who are suitably qualified and independent in their relevant field. They have extensive experience of leading assurance projects for water or infrastructure providers and have relevant knowledge of technical, commercial, and regulatory aspects of the water sector.