--- title: "Independent Review of Financial Model" ocid: "ocds-b5fd17-0b945f29-150b-469e-8b1f-d458572f0815" canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-0b945f29-150b-469e-8b1f-d458572f0815" markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-0b945f29-150b-469e-8b1f-d458572f0815.md" json_url: "https://d3tenders.com/contract/ocds-b5fd17-0b945f29-150b-469e-8b1f-d458572f0815.json" source: "Contracts Finder" current_stage: "Award" buyer: "WATER SERVICES REGULATION AUTHORITY" published: "2018-04-12" --- # Independent Review of Financial Model Buyer: WATER SERVICES REGULATION AUTHORITY Current stage: Award OCID: ocds-b5fd17-0b945f29-150b-469e-8b1f-d458572f0815 [View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-b5fd17-0b945f29-150b-469e-8b1f-d458572f0815) [Download OCDS JSON](https://d3tenders.com/contract/ocds-b5fd17-0b945f29-150b-469e-8b1f-d458572f0815.json) ## Summary The WATER SERVICES REGULATION AUTHORITY is seeking an independent review of its financial model through a selective tender process, involving the auditing services industry. The tender, titled "Independent Review of Financial Model," began on 13 December 2017 and concluded on 14 November 2017. The contract period extends from 13 December 2017 to 28 February 2018, with the awarded contract amounting to £45,711. This procurement opportunity targets firms able to provide expertise in financial auditing and analysis, particularly within the context of water regulation. ## Notice In setting price limits every 5 years, we have regard to our duties laid down in section 2 of the Water Industry Act 1991 as amended by subsequent Acts. In summary our main statutory duties are to: * protect the interests of consumers, wherever appropriate by promoting effective competition; * secure that the companies properly carry out their functions; * secure that the companies can finance the proper carrying out of their functions, and * secure long-term resilience. To enable us to meet our duties and set price limits Ofwat uses a bespoke financial model. For PR14 Ofwat developed its financial model in partnership with PwC. The PR14 financial model had three purposes: * To determine the wholesale price controls. * To calculate the revenues arising from the retail price controls. * To help assess financeability of the appointee, with the ability to refine the wholesale price control limits until target financeability indicators are satisfied. The model went through significant development during the price review process, with six versions of the financial model being published. We are currently developing a new financial model to use at PR19. We released a draft of this model in July 2017, alongside our consultation "Delivering Water 2020: Consulting on our methodology for the 2019 price review". The draft consultation financial model and rulebook is available here: https://064f1d25f5a6fb0868ac-0df48efcb31bcf2ed0366d316cab9ab8.ssl.cf3.rackcdn.com/wp-content/uploads/2017/07/Draft-PR19-financial-model.xlsm We received a number of comments on the model and are currently preparing a revised version of the model for publication on 13 December 2017. Objectives and scope of the work The objective of the work is ensure the W2020 Senior Responsible Officer and other stakeholders will have independent assurance that the revised PR19 financial model is fit for purpose. This will help create trust and confidence in the PR19 financial model, and allow stakeholders such as water companies to have greater assurance in the results generates. The scope of the work is to provide advice on: a) whether the methodology used in the model fits with Ofwat's policy requirements outlined in the final methodology document b) whether the formulae in the model have been implemented correctly c) how to correct issues found with the model and to ensure it complies with best practice with Ofwat's policy requirements It should be noted that the contractor will not be expected to implement any of the changes or recommendation that are identified. Ofwat expects to publish the finished external review report on our website. By tendering for the work the Contractor accepts that the final report will be publishable. Additional information: For further information, please contact: procurement@ofwat.gsi.gov.uk ## Key Details | Field | Value | | --- | --- | | Publication source | Contracts Finder | | Latest notice | https://www.contractsfinder.service.gov.uk/Notice/64e6907b-c678-4c42-ba91-3c465612e47e | | Notice type | Award Notice | | Procurement type | Framework | | Procurement category | Services | | Procurement method | Selective | | Procurement method details | Call-off from a framework agreement | | Tender suitability | SME | | Awardee scale | Large | | All stages | Award | ## Dates | Field | Value | | --- | --- | | Publication date | 12 Apr 2018 | | Submission deadline | 14 Nov 2017 | | Future notice date | Not specified | | Award date | 4 Dec 2017 | | Contract period | 13 Dec 2017 - 28 Feb 2018 | | Recurrence | Not specified | ## Values | Field | Value | | --- | --- | | Tender value | Not specified | | Lots value | Not specified | | Awards value | £45,711 | | Contracts value | Not specified | ## Status | Field | Value | | --- | --- | | Tender status | Complete | | Lots status | Not specified | | Awards status | Active | | Contracts status | Not specified | ## Buyer | Field | Value | | --- | --- | | Main buyer | WATER SERVICES REGULATION AUTHORITY | | Locality | BIRMINGHAM | | Post town | Birmingham | | Postcode | B5 4UA | | Country | England | | ITL 1 | TLG West Midlands (England) | | ITL 2 | TLG3 West Midlands | | ITL 3 | TLG31 Birmingham | | Local authority | Birmingham | | Electoral ward | Ladywood | | Westminster constituency | Birmingham Ladywood | | Delivery location | TLG West Midlands (England), TLI London | ## Supplier | Field | Value | | --- | --- | | Number of suppliers | 1 | | Supplier names | GRANT THORNTON | ## CPV Codes ### Divisions - 79 - Business services: law, marketing, consulting, recruitment, printing and security ### Codes - 79212000 - Auditing services ## Release History - 12 Apr 2018 at 13:39 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/64e6907b-c678-4c42-ba91-3c465612e47e ## Documents - https://www.contractsfinder.service.gov.uk/Notice/64e6907b-c678-4c42-ba91-3c465612e47e 12th April 2018 - Awarded contract notice on Contracts Finder ## Notice URLs - https://064f1d25f5a6fb0868ac-0df48efcb31bcf2ed0366d316cab9ab8.ssl.cf3.rackcdn.com/wp-content/uploads/2017/07/Draft-PR19-financial-model.xlsm ## Provenance This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-b5fd17-0b945f29-150b-469e-8b1f-d458572f0815. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-b5fd17-0b945f29-150b-469e-8b1f-d458572f0815.json.