Quality Assurance of AIMs and Water Trading

Quality Assurance of AIMs and Water Trading

Before Ofwat decides to implement the water trading and AIM incentives, in line with our standard practice on the Price Limits project, we wish to put in place an assurance process for our methodology around water trading and AIM, and the workings of and assumptions underlying our spreadsheet models.

Reference number: PROC.01.0371

Deadline date:13/03/2013

This deadline is for… Notice deadline.

Contract value:£0 – £0

Location where the contract is to be carried out: United Kingdom Uk

Is this suitable for smaller suppliers? Yes

Is this contract suitable for a voluntary, community and social enterprise organisations? No

Name of the buying organisation: Water Services Regulation Authority (Ofwat)

Original source URL http://www.mytenders.org/search/search_switch.aspx?ID=100279

 

Description of the contract

Ofwat has proposed significant changes to the existing framework of economic regulation of the water sector. We set out how we propose to use to set price limits for water and sewerage services to customers for the five years from 2015 to 2020 in January 2013: http://www.ofwat.gov.uk/pricereview/pr14/pr14publications/prs_web201301framework

In this document, we explained that there is scope for significant benefits to customers and the environment if companies make better use of water resources (see Chapter 7, pages 109-120). These benefits include:

– reduced costs;

– increased resilience of customers’ water supplies; and

– reduced pressure on the environment caused by abstraction in water scarce areas.

We proposed to introduce new targeted incentives to encourage efficient water trading, supported by the Abstraction Incentive Mechanism (AIM), which is designed to send signals to companies about the environmental costs of over-abstraction at the most environmentally sensitive sites.

These incentives are also designed to complement and facilitate the longer-term reforms set out by the UK Government in the Water White Paper and draft Water Bill. They are an important first step in realising the benefits of these longer-term reforms, but also deliver benefits to customers and the environment in the shorter term.

For water trading our preferred approach is to provide incentives for both exporters (sellers) and importers (buyers) of water. For AIM our preferred approach is to use a simple incentive that targets the most damaging over- abstractions. The document explains and summarises the main elements of our proposals for both water trading and AIM.

Before Ofwat decides to implement the water trading and AIM incentives, in line with our standard practice on the Price Limits project, we wish to put in place an assurance process for our methodology around water trading and AIM, and the workings of and assumptions underlying our spreadsheet models.

Products and timescales

We propose the following project milestones and timescales.

Milestones Timing

Initial meeting w/c 1 April 2013

Outline of assurance report w/c 22 April 2013

Draft assurance report w/c 6 May 2013

Final assurance report w/c 20 May 2013

(MT Ref:100279)

Classification of the contract

79410000 Business and management consultancy services

 

Additional information

Contract type: Services – Unspecified

Is it a framework agreement? No

Is this contract related to a programme of funding? No

Contract will be awarded based on: Most economically advantageous tender in terms of: The criteria stated in the contract documents

Estimated length of contract: 25/03/2013 – 31/05/2013

 

Who to contact

Contact name Erica Williams

Organisation name Water Services Regulation Authority (Ofwat)

Address Centre City Tower, 7 Hill Street, Procurement Team, Birmingham, GB, B5 4UA

Telephone +44 1216447500

Extension number:

Fax +44 1216447559

Web address http://www.ofwat.gov.uk/

 

How to apply

For further information please review the full notice details at http://www.mytenders.org/search/search_switch.aspx?ID=100279