---
title: "Bulk Charges for New Appointments and Variations Regime (NAVs) in the Water Industry in England and Wales"
ocid: "ocds-b5fd17-119f43d7-7996-40e8-9725-33678e742491"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-119f43d7-7996-40e8-9725-33678e742491"
markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-119f43d7-7996-40e8-9725-33678e742491.md"
json_url: "https://d3tenders.com/contract/ocds-b5fd17-119f43d7-7996-40e8-9725-33678e742491.json"
source: "Contracts Finder"
current_stage: "Award"
buyer: "WATER SERVICES REGULATION AUTHORITY (OFWAT)"
published: "2020-02-24"
---

# Bulk Charges for New Appointments and Variations Regime (NAVs) in the Water Industry in England and Wales

Buyer: WATER SERVICES REGULATION AUTHORITY (OFWAT)  
Current stage: Award  
OCID: ocds-b5fd17-119f43d7-7996-40e8-9725-33678e742491

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## Summary

The Water Services Regulation Authority (Ofwat) is overseeing a tender titled "Bulk Charges for New Appointments and Variations Regime (NAVs) in the Water Industry in England and Wales." This procurement process, classified under the main category of services and specifically within project management consultancy services, is currently complete. The contract, valued at £77,905, began on 6th September 2019 and will run until 31st March 2020. The procurement method used was an open procedure below threshold, and the tender period concluded on 12th August 2019. Deliveries are expected to occur in both the West Midlands and London regions.

This tender presents significant opportunities for businesses involved in project management consulting, particularly those with experience in the water industry and tariff evaluation processes. Companies that can analyse and evaluate pricing structures, as well as those familiar with nuances in cost differences across various water suppliers, will find themselves well-positioned to compete. The focus on transparency in pricing and the evaluation of wholesale margins can lead to further explorations and enhancements in consultancy services, supporting business growth in the water sector.

## Notice

The Supplier will be required to evaluate the bulk charges available to NAVs (waste and potable water) provided by the incumbent water companies, using publicly available information and information obtained from the incumbent water companies. The Supplier will then take a view of an appropriate cost base to use. For 2019/20 only one small water only company is yet to publish NAV tariffs. Two companies (United Utilities and Yorkshire Water) have published indicative tariffs and are consulting before finalising. Initial analysis of the published NAV tariffs suggest that there is a broad range in the size of the wholesale margins being offered to NAVs and varying degrees of transparency as to how these margins have been determined. Some NAVs have raised concerns that published NAV tariffs are inconsistent with incumbent water companies' existing tariffs, with the most extreme examples being NAV tariffs that are always higher than the Non-Household Tariff and others which are significantly worse than their 2018 NAV tariffs. Other NAVs have argued that incumbent charges do not reflect geographic differences in costs of supplying services. These may not be captured within the charges to developers, or Bulk Charges. There remains a number of unexplained variations in the application of NAV tariffs as the size of the connection (normally determined by number of connections) increases. The consultant must seek to understand the methodological differences as well as differences in actual cost, which drive the differences in margins both across companies and by relevant site specific criteria (typically site size/number of connections, but potentially also geographic location). Additional information: For Further Information ,please contact: procurement@ofwat.gov.uk

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/3b373239-5f9e-43c9-a468-5c9dc13e31ad |
| Notice type | Award Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Open |
| Procurement method details | Open procedure (below threshold) |
| Tender suitability | SME |
| Awardee scale | SME |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 24 Feb 2020 |
| Submission deadline | 12 Aug 2019 |
| Future notice date | Not specified |
| Award date | 4 Sep 2019 |
| Contract period | 5 Sep 2019 - 31 Mar 2020 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £77,905 |
| Lots value | Not specified |
| Awards value | £77,905 |
| 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 (OFWAT) |
| 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 | CAMBRIDGE ECONOMIC POLICY ASSOCIATES |

## CPV Codes

### Divisions

- 72 - IT services: consulting, software development, Internet and support

### Codes

- 72224000 - Project management consultancy services

## Release History

- 24 Feb 2020 at 10:34 - AwardUpdate - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/3b373239-5f9e-43c9-a468-5c9dc13e31ad
- 18 Feb 2020 at 11:35 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/3b373239-5f9e-43c9-a468-5c9dc13e31ad

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/3b373239-5f9e-43c9-a468-5c9dc13e31ad
  24th February 2020 - Awarded contract notice on Contracts Finder

## Provenance

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