Financial Resilience - (B) Ring Fence Protections

Work requirement (B) - Ring Fence Protections

We want to continue to ensure that our tools and approach maintain the high levels of protection currently enjoyed by the Appointee and its customers. We are constantly looking for ways to refine and improve our approach, and the Supplier will be supporting us in this process, for example considering a more targeted approach to companies who may be facing deterioration in their financial position to ensure early intervention.

This will include looking at how Ofwat might build on the work already underway to facilitate a broader, deeper reflection of a company's financial resilience. This would include how we could meet our intention to rely less on single triggers and ratings agencies, to a more rounded and holistic approach to assessing financial resilience. We want to make sure our monitoring and actions are focused in the right areas, and consequently whether our tool (including the licence) could be developed further.

We expect the Supplier to work closely with the Ofwat team to deliver this work. We are not seeking a long form written report, however we would like the Supplier to provide detailed input into the development of the policy in this area and to provide challenge to and be challenged by the Ofwat team in respect of alternative approaches that we might take.

Additional information: For Further Information;please contact procurement@ofwat.gov.uk