Water UK

Final Business Plans
View briefings on PR04 Final Business Plans
The Final Business Plan is the key document from the water company for the periodic review. The plans set out companies' overall strategies and the implications for price limits and average bills; their strategic objectives in terms of service performance, quality, environmental and other outputs; the activities necessary in the period to meet these objectives; and the scope for improvements in efficiency.

Draft Business Plans
These provide scenarios giving a broad picture that will help government and the regulators to examine options for future investment, future operating costs and the level of customer for 2005 to 2010. Companies submitted their 'Draft Business Plans' to Ofwat in August 2003.

Capital Maintenance
Work to maintain existing assets at a level which allows customers to receive the service they expect.

Financeability (Cost of Capital)
Measurement to ensure that the functions of a water and sewerage company are properly carried out and companies are able to finance their functions.

Depreciation (Broad Similarity)
The accounting measure of the consumption or wearing-out of an asset over its useful life. Depreciation is a key component of price limits. For 2000-05 it accounts for 20% of the average household bill.

Incentives and Efficiency
The element of the regulatory system that encourages companies to achieve efficiency improvements. Under current arrangements, companies are permitted to retain efficiencies in excess of the regulator's targets for a period of five years.

Quality Programme
The programme of expenditure to meet new drinking water quality or environmental standards.

Supply Demand Balance
The extent to which the demand for water and the water resources available are in balance, taking variability of supply and demand into account.

Regulatory Accounts
Accounts of the regulated business submitted by the companies for the direct consideration of Ofwat. Regulatory accounts are separate from the statutory accounts.

Customer Performance Index (Customer Issues)
Any issues relevant to customers e.g. performance index, sewer flooding, drinking water aesthetics.

PR04 Methodology and Process
Other directly related issues to the methodology and process of PR04 that are not referred to in the specific headings.