---
title: "Ofwat Residential Customer Segmentation Project - Phase 1"
ocid: "ocds-b5fd17-44aeef58-2abb-4edb-89c8-4d4cfb088205"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-44aeef58-2abb-4edb-89c8-4d4cfb088205"
markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-44aeef58-2abb-4edb-89c8-4d4cfb088205.md"
json_url: "https://d3tenders.com/contract/ocds-b5fd17-44aeef58-2abb-4edb-89c8-4d4cfb088205.json"
source: "Contracts Finder"
current_stage: "Award"
buyer: "WATER SERVICES REGULATION AUTHORITY"
published: "2018-05-17"
---

# Ofwat Residential Customer Segmentation Project - Phase 1

Buyer: WATER SERVICES REGULATION AUTHORITY  
Current stage: Award  
OCID: ocds-b5fd17-44aeef58-2abb-4edb-89c8-4d4cfb088205

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## Summary

The Ofwat Residential Customer Segmentation Project - Phase 1 is a procurement initiated by the Water Services Regulation Authority (Ofwat), aimed at developing a customer segmentation model to enhance understanding and service delivery for water customers, particularly those in vulnerable situations. This procurement falls under the business and management consultancy category, with a contract value of £49,480. The procurement method used is selective, via a call-off from a framework agreement. The tender period concluded on 11 January 2018, with the contract period set from 29 January 2018 to 30 March 2018. Deliveries are expected in both the West Midlands and London.

This tender presents significant opportunities for consultancy firms focused on customer analytics, particularly those with expertise in vulnerable customer segments within the public utilities sector. Businesses that can leverage data to enhance service delivery and address affordability challenges will find this project aligns with their competencies. Small and medium-sized enterprises (SMEs) are specifically encouraged to participate, as the contracting authority is actively looking to engage SMEs for this project.

## Notice

Objectives To successfully deliver an impactful and relevant customer segmentation model for Ofwat, we believe that the chosen model not only needs to enhance our evidence base, support our regulatory work and enable our organisation to gain a better understanding of water customers in general, but will need to be a meaningful tool across our programmes, enabling specific programmes to deliver better outcomes for customers. In order to achieve these goals, we identified several objectives that have to be met when delivering this project. The proposed segmentation model will enable Ofwat to: 1. Gain a better understanding of the wants and needs of water customers and be able to better protect the interest of customers - with specific regards to customers in situations of vulnerability (as highlighted in our statutory duties). 2. Provide a common language across Ofwat relating to customer segments, to be used when designing policies. 3. Better challenge the sector in making sure customers who are eligible are receiving financial and non- financial help. 4. Better challenge the sector in reducing bad debt, whilst staying in line with Ofwat's guidance on debt collection. 5. Better scrutinise companies' PR19 business plans' affordability, vulnerability, customer service and engagement content. 6. Better challenge companies' charging schemes rules in cases where companies' approaches are not sufficiently evidenced and would fail to consider specific customer segments and needs. Scope When studying the potential benefits of segmenting residential customers, we concluded that most of these benefits would be realised if we would have a better understanding of customers and different customer segments in vulnerable situations. Our initial assumption therefore is that our segmentation model should be principally focussed on customer data and consumer information that would enable us to better understand the different dimensions of vulnerability and affordability. We understand that some of the data and consumer information we need to develop our segmentation will be available internally, or might be provided by an external organisation in the future. The scope of the required work includes: * Carrying out a desktop research of existing customer segmentation models delivered by various regulators across different sectors focussing on data that enables a better understanding of financial and non-financial aspects of vulnerability. * Studying internally available Ofwat data and data that Ofwat could potentially get access to via other organisations, to enable us to better understand how we could overlay datasets and better scope our own work. * Submitting a final proposal, including at least three options for the approach Ofwat should adopt for its customer segmentation.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/820c2c15-8dec-4534-a7f1-73e5b05fc912 |
| 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 | SME |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 17 May 2018 |
| Submission deadline | 11 Jan 2018 |
| Future notice date | Not specified |
| Award date | 22 Jan 2018 |
| Contract period | 29 Jan 2018 - 30 Mar 2018 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | £49,480 |
| 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 | CAMBRIDGE ECONOMIC POLICY ASSOCIATES |

## CPV Codes

### Divisions

- 79 - Business services: law, marketing, consulting, recruitment, printing and security

### Codes

- 79400000 - Business and management consultancy and related services

## Release History

- 17 May 2018 at 13:17 - AwardUpdate - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/820c2c15-8dec-4534-a7f1-73e5b05fc912
- 16 Apr 2018 at 10:22 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/820c2c15-8dec-4534-a7f1-73e5b05fc912

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/820c2c15-8dec-4534-a7f1-73e5b05fc912
  17th May 2018 - Awarded contract notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/Attachment/bb152a4b-6d4a-42b3-9019-3bb17b3400a6
  Contract

## 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-b5fd17-44aeef58-2abb-4edb-89c8-4d4cfb088205. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-b5fd17-44aeef58-2abb-4edb-89c8-4d4cfb088205.json.