Regulation and Assurance Consultancy Framework

Tender description

Yorkshire Water Services Ltd (‘YWS’) is one of the largest Water Utility companies in the UK, with a turnover of 1 000 000 000 GBP. YWS provides water and wastewater services to 5 200 000 customers. YWS is regulated by the Office of Water Services (OFWAT); the Drinking Water Inspectorate (DWI); the Environment Agency (EA); Department for Environment, Food and Rural Affairs (DEFRA). Yorkshire Water Services (YWS) are tendering the services that will provide business, management, economic, regulatory and governance consultancy/advisory services plus assurance services as an independent third party to support the delivery of our business plan for AMP7 (period 2020-25). YWS envisage this being awarded to several expert advisors in each lot who can demonstrate experience and proven track record. A high-level scope, timeframes and objectives will be provided as part of the tender process once the Contract Notice expires: 12.8.2019. Lot 1: Regulation and Financial Pricing and Planning/Regulatory Finance Consultancy (Lot 1) Regulation and Financial pricing and planning/Regulatory Finance Consultancy (Lot 1): — provide analysis and supporting evidence for regulatory body and government department consultation responses (Ofwat, Environment Agency, Defra, National Infrastructure Commission, HM Treasury, BEIS, etc.), — provide regulatory and economic support in the development and delivery of the business plan and price review submissions, — preparation of regulatory positioning papers to support the development of economic, social and/or environmental related policy positions for both internal and external audiences, — provide performance and economic comparative benchmarking data and analysis across the water sector and across multiple sectors, — impact assess regulatory changes in collaboration with YWS, — support YWS with any future referrals to the regulator for casework including CMA referrals, — provide support for YWS on industry working groups through the development of knowledge/position papers and/or the provision of subject expert representation, — develop pricing policy and tariff design related to current and emergent markets in compliance with charging principles, guidance and rules and the Competition Act, — promote improvement of the regulatory financial model, — provide data and financial analysis to optimise revenue recovery. Lot 2: Assurance Consultancy (Lot 2) Assurance Consultancy (Lot 2) — provide regulatory assurance services to confirm whether the company complies with appropriate legislation or Ofwat's reporting requirements and guidelines, and to ensure that all the company's material assumptions have been exposed and explained, including but not limited to: —— assurance over the integrity and quality of the data being published, —— assurance over the processes to meet regulatory requirements, —— assurance around level playing field/competition act principles, —— assurance/challenge over whether material assumptions have been exposed and explained, — technical assessment of processes and procedures that are in place to meet regulatory requirements, — provision of interpretations and advice on regulatory guidance, — reviewing inputs and outputs of regulatory models, — risk based reviews aligning to YWS’s company strategy requirements including the company monitoring framework and regulatory accounting guidance, — assurance services relating to YWS’s performance commitments and outcome delivery incentives as defined in our business plan final determination (including a review of processes, data, relevant internal/external audit findings, review of improvement plans), — provide strategic assurance and help YWS understand the way that Ofwat will assess the contents of regulatory reporting/periodic review business plans/in-year ODIs, — strategic support to identify which areas need assurance, — provide support aid YWS’s understanding of Ofwat’s economic regulation models, econometric models and cost models, — advise on economic and regulatory trends, — provide independent technical assurance or advice over YWS operations across all price controls, — documentary outputs will be required in the form of a summary letter addressed to the Board (that can be shared externally) plus more detailed reporting listing findings and recommendations, which will allow for management response and improvement.