C-MeX and D-MeX Shadow Year Research for Price Review 2019

The scope of the project includes the Supplier doing the following: • Conducting of the surveys for C-MeX and D-MeX mechanisms for the shadow year between 1 May 2019 and 31 March 2020. The contract is until 30 April 2020 (to enable the Supplier to finalise its assessment and deal with queries) with the potential to complete a further year of research, should the Customer deem this is required. • Engaging with Ofwat and stakeholders via the Working Groups and sub-groups as and when necessary. This may include running workshops; engaging with Ofwat and stakeholders via the Working Groups and sub-groups as and when necessary; • assessing the outcomes of the surveys and compiling of the C-MeX and D-MeX scores; • familiarising themselves with the areas of work referenced in this document including keeping up to date with policy developments in these areas, which may include liaising with relevant stakeholders or running workshops; and engaging with Ofwat and stakeholders via the Working Groups and sub-groups as and when necessary; • providing feedback to Ofwat on the shadow year process and outcomes, and, if necessary, recommendation for C-MeX and D-MeX methodology based on findings. The final incentives will be run by Ofwat. All decisions on the final design of C-MeX and D-MeX will remain for Ofwat. • In conjunction with stakeholders and Ofwat, developing the final guidance that companies will need to follow when C-MeX and D-MeX become operational. Suppliers are to provide costings for the sample sizes set out in the sections below for each incentive, as well as alternative sample sizes, based one of the following services: • Completion of surveys for C-MeX only; • Completion of surveys for D-MeX only; and • Completion of surveys for both C-MeX and D-MeX

C-MeX and D-MeX are primarily mechanisms to incentivise better service. They are not designed to be diagnostic tools or replacements for companies to engage with their customers. Nonetheless we expect that the process will provide companies with insight on, and the opportunity to make, service improvements. We made a decision to run the shadow year from 1 May 2019 to 31 March 2020, making the duration of the shadow year 11 months only. Although the shadow year is 11 months in length, we would like the Supplier to assume that the scope of the work is the same as if the shadow year was 12 months in duration. We leave it to the Supplier to adjust the scope of work across the 11 months of the shadow year.

Additional information: For further information, please contact: [email protected]