Ofwat capital expenditure incentive scheme (CIS) example

Ofwat workbook (3 sheets, Microsoft Excel) illustrating the proposal in the March 2008 paper to introduce a menu scheme for capital expenditure projections for the Ofwat price control review 2009.

As in Ofgem's worked examples for this type of scheme, the expenditure projections, bids and outturns are shown as numbers around 100, with Ofwat's baseline expenditure projection being (implicitly) set to 100. There is no information in this worked example (or in the cover note) about how the baseline expenditure projection would be set in practice.

For further information or advice please contact Franck Latrémolière.

Filed under Ofwat, Price controls, Water.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon