Our five year business plan
Our business plan
Every five years water companies submit a business plan to the regulator, Ofwat, which sets out what they hope to achieve in the following five years, and how all the costs involved are to be paid for. Ofwat then decides what customers pay for each of the five years.
In April 2013 we merged with South Staffs Water and on 2nd December 2013 we published a single business plan for the period 2015-20, which covers both regions. This business plan will now be reviewed by Ofwat and, in 2014, they will tell us whether the plan is acceptable or not. The plan covers the period 2015-2020.
By listening to our customers and working with the Local Water Forum we have identified the following key outcomes for our business:
- Excellent water quality
- Secure and reliable water supplies
- An excellent customer experience for customers and the community
- Operations that are environmentally sustainable
- Fair customer bills and fair investor returns
All of these have to be delivered in the face of increasing energy costs, the need to maintain our assets in good working order and the impact of the economic downturn, whilst providing a level of service that achieves customer satisfaction and low bills.
The detailed plan, along with supporting documents, is available to download using the links at the bottom of this web page.
If you are interested in any of the individual strategies that support the business plan, but do not want to download the complete document, you can find them by clicking here.
The business plan is a result of feedback received during nearly two years of work, which has seen 4,500 customers, including 800 business customers, consulted during research studies. Cambridge Water also set up and worked closely with a Local Water Forum, which later merged with the Customer Challenge Group, comprising representatives from stakeholders like the Consumer Council for Water, the Drinking Water Inspectorate and the Environment Agency, along with local councillors and business operators.
A copy of the Local Water Forum Assurance report can be downloaded here:
Business Plan resubmission
On Friday, 27 June 2014, Cambridge Water submitted an update to their 2015-2020 Business Plan and further supporting evidence to the economic regulator, Ofwat.
After receiving guidance and feedback from Ofwat, stakeholders and customers, we’ve introduced further challenge and provided greater clarity and evidence on our performance commitments to our customers.
What does this mean for customer bills?
Our plans recommend that bills, which are currently the second lowest in England and Wales, will increase by less than the rate of inflation over the five years from 2015 to 2020. The latest piece of research, carried out among 1,000 household and business customers across both the South Staffs and Cambridge regions, showed that 87 per cent of respondents were happy with the proposed plan.
Outcome Delivery Incentives
In December 2014 our regulator, Ofwat, finalised the measures of success that we will use to report on our performance from 2015 to 2020.
Attached to some of these measures are financial incentives (rewards and penalties), either for outstanding performance or poor performance. Ofwat also requested that we adjust our financial incentives to match our menu choice.
The Outcome Delivery Incentives document sets out our final performance commitments and financial incentives, post adjustment, which will come into effect from the 1st April 2015.
Each year, we will publish a report of our performance in these measures of success.