Ofwat consultation on customer service incentives

Ofwat consultation (about 6 pages) on proposals to "refocus" the overall performance assessment (OPA) “away from those aspects of service where standards and other enforcement tools are available or appropriate” so that it “focuses on the qualitative aspects of service that is the consumer experience”.

This would tend to decouple OPA incentives from capital expenditure incentives (which are to be mainly governed by a menu scheme put forward by Ofwat — see sections 4.2 and 6.1.2 of Ofwat's March 2008 paper). Ofwat acknowledges a “need to look further at the balance between the operating expenditure rolling incentives and a refocused OPA”.

For further information or advice please contact Franck Latrémolière.

Filed under Ofwat, Price controls, Water.

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