Jargon buster. A guide to common terms and acronyms

Transcription

1 Jargon buster A guide to common terms and acronyms 30 August

2 2

3 Introduction This document is intended to serve as a reference for any Thames Water stakeholder, whether internal or external, who wishes to understand the day-to-day terminology and acronyms used within the company. As the majority of these terms apply to activities across the business, this document is structured in alphabetical order rather than by topic. 3

4 Common terms and acronyms in alphabetical order Abstraction Incentive Mechanism (AIM) AD Advanced Energy Recovery (AER) AER AIM AIR Anaerobic Digestion (AD) AMP Applicant Information Return (AIR) ARRC Asset Asset Management Period (AMP) Assurance Letters The AIM is a scheme devised by Ofwat to provide an incentive for water companies to reduce the use at a small number of selected water sources that have the potential to cause environmental damage. The reductions will only be made when river flows are low. There is allowance for the reduction to be suspended under certain conditions (e.g. if demand is very high or if the alternative source is not available for any reason). The AIM is only proposed as a reputational measure for AMP6. It may be further developed for AMP7 when it may become a financial incentive. See Anaerobic Digestion An alternative sludge disposal route to agriculture is to convert the remaining organic material in treated sludge to electricity using advanced thermal processes that avoid combustion so that there is little greenhouse gas pollutants. See Advanced Energy Recovery See Abstraction Incentive Mechanism See Applicant Information Return The method generally employed to treat sludge. See Asset Management Period The AIR is one of the company submissions required as part of the Market Entry Assurance Certification (MEAC) process, led by MOSL in preparation for non-household retail market opening. The Audit Risk and Regulatory Committee (ARRC) is a subcommittee of the TWUL Board, with responsibility for overseeing matters relating to audit, assurance, risk, reporting and regulation. This term refers to all of the pipework and equipment we run, including water mains, sewers, treatment works and pumping stations. An AMP is the five-year period covered by a water company s business plan. These are numbered, with AMP1 referring to the first such planning period after the water industry was privatised i.e. the period from 1990 to The current period ( ) is known as AMP6, and the period for which we are now starting to plan ( ) will be AMP7. As part of the assurance requirements ahead of non-household retail market opening, at prescribed stages in the process, each market participant is required to provide Ofwat with formal assurance letters, signed by the company s Board, that provide assurance over their readiness for full non-household retail market opening. There are 3 letters: 1 Planning - submitted February Interim - due 7 October Final - due 3 February

5 Bazalgette Tunnel Ltd.(BTL) Bilaterals Biogas Bioresources Biosolids Blueprint for Water BTL BTL is the Infrastructure Provider responsible for undertaking the construction of the Thames Tideway Tunnel on behalf of Thames Water. The communications process between wholesalers and retailers a retailer provides a wholesaler with a Bilateral form to request that the wholesaler exchanges a meter. The resultant methane-rich gas released from the Anaerobic Digestion (sludge treatment) process. At PR19, Ofwat requires companies to submit business plans for each of the following Wholesale price controls: Water network plus, Water resources, Wastewater network and Bioresources. The term bioresources covers company activity relating to the transportation and treatment of sewage sludge. The final treated product after Anaerobic Digestion (sludge treatment) that is a nutrient-rich organic fertiliser that can be applied to agricultural farmland. A document launched by a coalition of leading environmental organisations in 2006, setting out ten steps to sustainable water. The bodies included the National Trust, RSPB and WWF. See Bazalgette Tunnel Ltd. C17 See Competition 2017 Capex Castle Water CCG CCW Central Market Operating System (CMOS) CGI CHI CHP CMA CMOS Combined Heat and Power (CHP) Capex (Capital expenditure) is the term applied to investment in new assets or equipment. This includes building new treatment works, laying new pipes and the construction of new sources of self-generated renewable energy. The retailer, to which Thames Water is transferring its nonhousehold retail customers. Following the transfer of accounts on 1 April 2017, the non-household customers will be free to switch to whichever retailer they choose. Ahead of 1 April 2017, Castle Water is acting as our agent. See Customer Challenge Group See Consumer Council for Water CMOS is the market IT system for the non-household retail market, through which retailers and wholesalers will communicate, process customer bills and supports the switching process. The company that is building the CMOS system for MOSL. See Customer Happiness Indicator See Combined Heat and Power See Competition and Markets Authority See Central Market Operating System A type of engine that combusts biogas, converting it to heat to power the process, and green renewable electricity to run out sites. 5

6 Combined Sewer Overflows (CSOs) Competition 2017 (C17) Competition and Markets Authority (CMA) Consumer Council for Water (CCW) Consumer Price Index (CPI) CPI CRMB CSAT CSOs Customer Challenge Group (CCG) Combined sewers collect rainwater as well as foul sewage. The combined sewer overflows (or CSOs) from these systems allow wastewater to overspill into watercourses when the sewer system reaches its capacity. CSOs can therefore cause pollution of rivers and streams. The Water Act 2014 will allow 1.2 million non-household customers of water and wastewater providers that are based mainly or wholly in England to choose their supplier of water and wastewater retail services from April Retail services include billing and customer service activities. At the moment only a limited number of non-household customers across England and Wales can choose their retailer. The new market will be the largest retail water market in the world. Customers will be able to shop around and switch to the best deal. Investors and retailers will have new opportunities for growth, and the environment will benefit from customers using new water efficient services. The UK Government is committed to delivering the new market, and has set up Open Water, a single programme of work that brings together all of the key organisations to design and deliver the new market. These include the Department for Environment Food and Rural Affairs, Ofwat and Market Operator Services Limited a private company owned by market participants. Thames Water has a programme in place to ensure we are ready for market opening. The CMA is an independent non-ministerial department tasked with promoting competition for the benefit of consumers, both within and outside the UK. Its aim is to make markets work well for consumers, businesses and the economy. Water companies have the right to appeal Ofwat s Price Review Determinations to the CMA. The CMA can also be involved in competition investigations. The customer watchdog for the water sector The Consumer Prices Index is a measure of economic inflation based on a set series of goods and services set by the Office for National Statistics. This is the headline measure used in the Government s target for inflation. See Consumer Price Index See Spring (which has superseded the CRMB programme) See Customer Satisfaction See Combined Sewer Overflows As part of the requirements for the 2014 Price Review, Ofwat required each company to establish a CCG an independent group comprising customer representatives and other stakeholders. The role of a CCG is to challenge the water company s business plans and business planning process, primarily by ensuring that the company has properly considered the view of its entire customer base, and local and regional issues in the development of its plans. 6

7 Customer Happiness Indicator (CHI) Customer Satisfaction (CSAT) DD Defra Discharge consents Dividend Draft Determination (DD) Drinking Water Inspectorate (DWI) Drinking water quality compliance DWI EA Economic Level of Leakage (ELL) ELL Environment Agency (EA) FBP FD The Customer Happiness Indicator is a new tool we have trialled in Wholesale Water to identify the customers that are most likely to score us poorly for customer satisfaction. It allows us to prioritise and escalate work where customers have experienced performance issues, such as late arrival or non-attendance at a job. CSAT refers to the qualitative component of the SIM measure. See Draft Determination The Department for the Environment, Food and Rural Affairs is the Government department responsible for issues including the natural environment, environmental protection and pollution control Each sewage treatment works has its own discharge consent, set by the Environment Agency, which defines the quality of treated effluent we are permitted to discharge to the relevant watercourse. Dividends are the amounts paid to our shareholders to reward them for the capital that they have invested in the company. Following its assessment of a company s business plan as part of the price review process, the Draft Determination is Ofwat s draft decision on what a water company can charge its customers in the following five year period. Its decision is based upon what expenditure it thinks an efficient company needs to provide services in line with the performance standards agreed between the company and its customers. The Drinking Water Inspectorate regulates drinking water quality in England and Wales. Our water is tested against 50 different elements to determine its microbiological, chemical, radiological and aesthetic qualities. These standards are outlined in the legislation to protect public health and our compliance is monitored by the DWI. Results from water samples collected at our treatment works, service reservoirs and customer taps are compared to these quality standards and any failures are then reported to the DWI. See Drinking Water Inspectorate See Environment Agency The economic level of leakage is the level at which it would cost more to make further reductions than to increase supply or reduce demand by other means for example, by developing a new water source. The calculation takes into account environmental and social costs, as well as financial ones, and can therefore vary over time and between areas. See Economic Level of Leakage The Environment Agency regulates our impact on the natural environment for example, by controlling how much water we can take and the quality to which we must treat sewage. See Final Business Plan See Final Determination 7

8 Final Business Plan (FBP) Final Determination (FD) HH Household (premises) (HH) IDEX IDoK Infrastructure assets Instrument of Appointment (IoA) IoA K MAP Market Architecture Plan (MAP) Market Entry Assurance Certification (MEAC) Our Final Business Plan is the version of our plan that we submit to Ofwat as part of the Price Review. Ofwat uses this to decide the prices we can charge our customers Following its assessment of a company s business plan as part of the price review process, the Final Determination is Ofwat s final decision on what a water company can charge its customers over the following five years. Its decision is based upon what expenditure it thinks an efficient company needs to provide services in line with the performance standards agreed between the company and its customers. See Household Premises in which, or in any part of which, a person has a home (Defined in the Water Industry Act 1991 and Ofwat guidance on eligibility). Industry Data Exchange The software used by TW to communicate with the Central Market Operating System (CMOS) run by MOSL. IDEX will also enable TW systems to receive communications from CMOS. AMT Sybex is the company building the TW Wholesale IDEX. The price review process, through which companies establish their plans for the future and the associated impact on their customers bills, takes place once every five years. An Interim Determination of K (IDoK) is the process through which, companies are able to submit an application to Ofwat for a review of prices between these five-year periods in the event that the company is faced with unforeseen costs that meet a set of financial criteria. Infrastructure assets are mainly our below-ground assets, such as pipes, water mains, sewers, dams and reservoirs. Water companies operating the public water networks hold appointments as water undertakers, and those operating the public wastewater networks hold appointments as sewerage undertakers, for the purposes of the Water Industry Act They also supply water and wastewater services directly to household and nonhousehold customers who are connected to their networks. See Instrument of Appointment The annual, variable factor, which, in addition to RPI, is applied to water and sewerage prices (RPI + K) See Market Architecture Plan The MAP contains the rules for the operation of the nonhousehold retail market, and comprises nearly 80 documents. Market Entry Assurance Certification provides assurance to MOSL that a company seeking to become a trading party in the nonhousehold retail market has the required systems, processes and capabilities to fulfil its market obligations. 8

9 Market Operator Services Ltd. (MOSL) Market Participant MEAC Megalitre (Ml) Ml Mogden formula MOSL National Environmental Programme (NEP) Natural England (NE) NE NEP NHH Non-Household (NHH) Non-infrastructure assets ODIs Ofwat OPA The Water Act 2014 established the framework to create a retail market for non-household water and wastewater customers in England, which the Open Water programme is due to deliver in April Delivery of the programme is the responsibility of Defra, Ofwat and MOSL. The partners are working together closely to ensure that the market opens on time, within budget and operates effectively. MOSL is responsible for delivering the systems, processes and interfaces required to enable the new market to operate. Key to this is the core Central Market Operating System (CMOS) and the rules and codes on which the market will be based. MOSL has also taken on a number of significant responsibilities from Open Water Markets Ltd (OWML), which was wound down in July MOSL was created in October 2014 as a private business, limited by guarantee. It is owned by its members, currently 24 of 31 eligible companies. In the context of the non-household retail market, a market participant may refer to an incumbent Wholesaler, Retailer or new Entrant. See Market Entry Assurance Certification A megalitre is one million litres of water and is often written as Ml. One Ml/day (or Mld) = one million litres per day. See Megalitre The formula used as the basis for establishing charges for trade effluent, based on volumes, concentrations and oxygen demand See Market Operator Services Ltd. The NEP is a list of environmental improvement schemes that ensure that water companies meet European and national targets related to water. NE is the Government s adviser on the natural environment, its role including the management of wildlife and the protection of Sites of Special Scientific Interest See Natural England See National Environmental Programme See Non-Household Customers/premises that are not private households, for example: businesses, charities, hospitals. Non-infrastructure assets are those mainly found above ground, such as water and sewage treatment works, pumping stations, laboratories and workshops. See Outcome Delivery Incentives Ofwat is the economic regulator of the water and sewerage industry in England and Wales. See Overall Performance Assessment 9

10 Open Water Open Water Markets Ltd (OWML) Opex Outcome Outcome Delivery Incentives (ODIs) Overall Performance Assessment (OPA) OWML PC PE Performance Commitment (PC) Open Water is a programme of work that brings together all of the key organisations to design and deliver the new market by April These organisations include the Department for Environment, Food and Rural Affairs (Defra), Ofwat and Market Operator Services Ltd (MOSL). The programme is co-ordinating the development of the framework, systems and key documents (codes, processes and agreements) that are necessary for an effective market. The Open Water programme was set up by the UK Government to deliver the competitive market by April The key organisations responsible for delivering the new market are Defra, Ofwat and MOSL. The programme was overseen by Open Water Markets Limited (OWML) until August 2015, when its activities were transitioned into MOSL and Ofwat. Opex (Operating expenditure) is the term applied to paying for the day-to-day operations of our business, such as the operation and maintenance of our network and treatment works, paying our staff, and our energy bills. Outcomes are the basic long-term services and benefits a water company aims to provide for customers in their current five-year plan and beyond. Company business plans, as set through the price review process are designed to deliver these Outcomes, and contain a framework of Performance Commitments (or targets), underpinned by a framework of Outcome Delivery Incentives. ODIs are part of the Outcomes framework that underpins each company s business plans in a given five-year AMP. ODIs are incentives that are linked to each Performance Commitment within the plan; Performance Commitments are linked to the overall customer-driven Outcomes. Therefore ODIs ultimately incentivise the delivery of not only the Performance Commitments but also the Outcomes. ODIs can be financial or reputational, and either positive (rewards) or negative (penalties). Rewards allow us to charge more over the next five years (in this case, ), while penalties allow us to charge less. Some of these ODIs measure performance in each of the five years of our current plan, while others apply only to the whole five years This was a former measure of water company performance, devised by Ofwat, which reflected the broad range of services we provided to customers. This has now been replaced by SIM the Service Incentive Mechanism. See Open Water Markets Ltd. See Performance Commitment See Population Equivalent Performance Commitments are part of the Outcomes framework that underpins each company s business plans in a given five-year AMP. Performance Commitments are the targets that are set against key performance measures the Performance Commitments reflect customers views and priorities of the level of service that they expect to be delivered. Delivery of the Performance Commitments enables a company to demonstrate delivery of its Outcomes. The achievement of Performance Commitments is incentivised through Outcome Delivery Incentives. 10

11 Pitt Review Population Equivalent (PE) PR (PR94, PR99, PR04, PR09, PR14, PR19) After the 2007 floods that affected 55,000 homes, the Government commissioned the Pitt Review to ensure it didn't happen again. It was chaired by civil servant Sir Michael Pitt. The population equivalent served by a sewage works represents the local population, plus a measurement of industrial effluent, expressed as an equivalent number of people. For example, effluent from a local factory might equal that produced by 5,000 people. If the works also treats sewage from 2,000 residents, its PE would be 7,000 See Price Review PR16 See Price Review 2016 Price Review Price Review 2016 (PR16) Rant & Rave RBR RCV Regulatory Capital Value (RCV) The Price Review is the process through which Ofwat reviews and sets water companies business plans for the forthcoming five-year Asset Management Period. Through this process, after scrutinising company plans to ensure value for customers money, Ofwat sets the amount of money the company can invest in its assets, as well as the upper limits it can charge its customers, over the period. This process takes place every five years for water companies in England and Wales. So far, the following Price Reviews have taken place: PR94, PR99, PR04, PR09 and PR14. Ofwat is in the process of undertaking PR16 (see below). The industry is preparing for PR19, which is the process that will set company plans and customer price limits for the period 2020 to In the 2014 price review, Ofwat set separate price controls for the period for each of the following areas of business activity; Wholesale Water, Wholesale Wastewater, Thames Tideway Tunnel, Retail Household and Retail Non-Household. However, rather than applying for the full five years, the form of the nonhousehold retail price control was designed to protect customers for the two years ahead of market opening in April 2017, and to provide backstop protection and a comparison point for customers once the market opens. Ofwat is reviewing the non-household retail price controls ahead of market opening in April 2017 via the 2016 price review, which applies solely to non-household retail. Ofwat measures customer satisfaction on a quarterly basis, but we have worked with customer experience company Rant & Rave to measure this around the clock so that we can better assess our performance. When we have resolved a customer s issue, we send them a text message asking them to score our response on a scale of one to five. The data from this is known as Rant & Rave. See Risk-Based Review See Regulatory Capital Value The Regulatory Capital Value represents the amount that we have invested in the business that customers have not yet paid for. 11

12 Resilience Retail Retail Market Opening Management Group (RMOMG) Retail Price Index (RPI) Revenue cap Renewable Obligations Certificate (ROC) Risk-Based Review (RBR) RMOMG ROC RPI SAS SDS Security of supply index (SOSI) Under the 2014 Water Act, Ofwat has a new primary duty to further the resilience objective. Resilience has been defined as the ability to cope with, and recover from, disruption, and anticipate trends and variability in order to maintain services for people and protect the natural environment now and in the future. This term refers to any water company activities that take place once water has passed to the customer s side of a property boundary. These include billing, payment handling, debt management, meter reading and handling billing-related calls. The RMOMG is responsible for the overall programme governance and leadership for the delivery of the non-household retail market. This includes the programme-level decisions required to address programme delivery risks and issues, and the management of plans and budgets. The meeting is chaired by Defra and includes Ofwat and MOSL. RPI is an alternative measure of economic inflation to CPI. RPI is no longer an official National Statistic due to statistical flaws in its calculation. However, it is still widely used, particularly in relation to index-linked gilts. A revenue cap is the maximum amount of regulated revenue that the company can collect from its customers, developers and other sources. The revenue caps are set by Ofwat as part of each price review. At the 2014 price review, revenue caps were set for the water, wastewater, Thames Tideway Tunnel and retail household price controls for the period from 1 April 2015 to 31 March A government financial incentive to produce renewable electricity. As part of the PR14 price review process, Ofwat carried out a riskbased review of company business plans. The risk-based review comprised a framework of tests for high quality business plans under a defined set of categories. In its Water 2020 consultation, Ofwat has indicated that it will adopt a similar approach for PR19. See Retail Market Opening Management Group See Renewable Obligations Certificate See Retail Price Index Surplus activated sludge the solid residue from the activated sludge process used in sewage treatment plants. See also WAS. See Strategic Direction Statement SOSI is a package of measures that are designed to assess whether a company can meet its customer demand for water, even in hot, dry weather 12

13 Service Incentive Mechanism (SIM) SFOC Sewer Flooding Hydraulic Sewer Flooding Other Causes Shadow Operations SIG SIM Sludge Social tariff SOSI Special Interest Group (SIG) Spring (formerly CRMB) Strategic Direction Statement (SDS) STW SuDS Sustainable Urban Drainage Systems (SuDS) SIM was introduced by Ofwat to replace the OPA as a measure of the service customers experience from their water company. There are two elements to the SIM: A quantitative measure awards penalty points for incoming customer unwanted contacts ranging from incoming calls to written complaints. A qualitative measure is calculated via telephone interviews to assess the satisfaction of customers who have contacted us to resolve queries. See Sewer Flooding Other Causes Sewer flooding that is caused by a lack of hydraulic capacity in the sewerage network. Sewer flooding that is caused by factors other than a lack of hydraulic capacity in the sewerage network, e.g. blockages. The period from October 2016 to March 2017, during which the non-household retail market will open to allow all of the systems to be tested. While everything will be as it will be in the live market, no switching can take place and no real bills will be processed. See Special Interest Group See Service Incentive Mechanism The beneficial by-product of the sewage treatment process (see bioresources). A social tariff is a small increase in bills for the majority of customers, which is used to reduce the charges of those customers who find it hardest to pay. See Security of Supply Index SIGs are forums in which MOSL and Market Participants can work together on specific areas of work related to preparations for nonhousehold market opening. Spring is the IT system that is being implemented by TW Retail for customer relationship management and billing. Originally this was intended to cover both household and non-household activity, but is now being developed solely for household activity. Our Strategic Direction Statement was produced at the 2009 Price Review (PR09) and set out our strategic direction for the subsequent 25-year period. It outlined how we will respond to future challenges, such as climate change, leakage and the need to conserve water. Our strategy is refined as part of preparations for each Price Review. Sewage treatment works. See Sustainable Urban Drainage Systems Sustainable urban drainage systems encourage rain to soak into the soil, rather than run into our sewers examples include grassed roofs and porous paving. 13

14 Target Operating Model (TOM) TE Thames Tideway Tunnel (TTT) Thames Water Commercial Services Ltd. (TWCSL) Thermal Hydrolysis Process (THP) THP TOM Totex Trade Effluent (TE) TTT UKWIR WACC WaSCs WAS Water 2020 A Target Operating Model is a description of the desired state of business operations. Typically it includes the roadmap that specifies what the company needs to do to move from the "as is" model to the "to be" model. See Trade Effluent The Thames Tideway Tunnel is a major new sewer, urgently needed to protect the tidal River Thames from pollution. London's sewerage system is no longer fit for purpose and spills millions of tonnes of sewage into the tidal section of the river every year. The tunnel will tackle the problem of overflows from the capital's Victorian sewers for at least the next 100 years, and enable the UK to meet European environmental standards. Thames Water Commercial Services Ltd is the part of the TW Group business that is currently operating as a retailer in the competitive market in Scotland, and in England for customers outside the TW geographical area who use more than 5 megalitres per year and have chosen us as their water retailer. A stage of the sludge treatment process (prior to Anaerobic Digestion) that pressure cooks the sewage sludge to kill off all harmful bacteria and break down the sludge to make it easier to digest See Thermal Hydrolysis Process See Target Operating Model The term totex (total expenditure) was introduced in the 2014 Price Review (PR14), and applies to the total, or combined, capital (capex) and operational (opex) spend. The object of introducing the totex was to enable companies to achieve the optimum balance of capex and opex to deliver the required business plan outcomes in the most efficient way possible. It applies to both the water and wastewater price controls (i.e. our wholesale business) but not to retail. TE is any liquid waste (effluent) other than surface water and domestic sewage that is discharged from premises being used for a business, trade or industrial process. See Thames Tideway Tunnel UK Water Industry Research (UKWIR) is an organisation that provides a framework for the procurement of a common research programme for UK water operators on "one voice" issues. See Weighted Average Cost of Capital Water and sewerage companies of which Thames Water is the largest provide both drinking water and sewerage services. Waste activated sludge the solid residue from the activated sludge process used in sewage treatment plants. See also SAS. Water 2020 is Ofwat s programme of work to establish the approach to the 2019 Price Review. 14

15 Water Act 2014 Water Framework Directive (WFD) Water Resources in the South East (WRSE) Water Resources Management Plan (WRMP) Water UK Weighted Average Cost of Capital (WACC) WFD Wholesale Wholesale Market Services (WMS) Wholesale Revenue Forecast Incentive Mechanism (WRFIM) WMS The water industry supplies goods and services which are essential to health, wellbeing and economic stability. These services are coming under increasing pressure as a result of a growing population and a changing climate. To meet these challenges, UK Government saw the need to change the way water is managed. Its aim was for water companies to be more innovative, more efficient and more attentive to what their customers want. The Water white paper and Water for life: market reform proposals sets out the plans to deal with the challenges facing the water industry, as well as encouraging better customer service and protection for the environment. To implement some of the plans in the White Paper, the Water Act 2014 received Royal Assent on 14 May The Water Framework Directive for England and Wales is a major piece of European legislation to improve and protect the quality of inland, estuary and coastal waters. Water Resources in the South-East is a group made up of water companies, regulators and stakeholders. Its aim is to better coordinate and integrate water resources planning across the region, ensuring the efficient development of a best-value supply strategy over the next 50 years and beyond. Thames Water is a member, as are Sutton & East Surrey, Southern, Affinity, South-East and Portsmouth Water. WRSE has close links with the equivalent Water Resources East Anglia (WREA) group. Our 25-year Water Resources Management Plan is updated every five years and sets out how we aim to meet the predicted demand for water in our region over that period. Water UK is the industry body representing member companies interests. The RCV is funded partly by shareholders (equity), and partly by borrowing (debt). When we borrow money we need to pay interest on the debt, and shareholders require dividends to reward them for the capital they have invested in the company. The WACC reflects the appropriate interest rate and return to shareholders, weighted by the appropriate proportions of debt and equity. See Water Framework Directive This term covers all water company activities that take place on the company side of the company/customer property boundary resources management, abstraction, treatment, distribution (water and sewer networks), sewage collection, transportation, sewage treatment, sludge disposal and energy from waste Wholesale Market Services is the team working across Wholesale Water and Wastewater who will interface with retailers on behalf of TW wholesale. The WRFIM is an Ofwat mechanism that is designed to provide financial incentives for companies to provide accurate forecasts of their wholesale revenue, and ensure that under- and over-recovery of revenue is reconciled. See Wholesale Market Services 15

16 WoCs Workplan Review Group (WRG) WRFIM WRG WRMP WTW Water-only companies provide drinking water but not sewerage services. Examples include the three WoCs serving London: Affinity Water, Essex & Suffolk Water, and Sutton & East Surrey Water. The WRG is a monthly meeting, at which MOSL and Market Participants review progress against the programme of preparations for non-household market opening, and agree how to manage issues. See Wholesale Revenue Forecast Incentive Mechanism See Workplan Review Group See Water Resources Management Plan Water treatment works 16