Information Letter

18 January 2006

Information Letter 2/2006

To: Board Level and Day to Day Contacts of Water and Sewerage Companies and Water Companies in England and Wales

Dear Sir/Madam

Concessionary Supplies: Reporting of compliance results and the calculation of Operational Performance Indices

1.          The purpose of this letter is to inform water companies about the reporting of compliance results for concessionary supplies and the subsequent calculation of the Operational Performance Index for six parameters (OPI (6)) on behalf of the water industry for OFWAT.

2.          A number of water companies have raised the matter with the Inspectorate and we recognise that there are issues associated with concessionary supplies. Therefore, for reporting of compliance data for 2006 and beyond, water companies may combine all such supplies into a single water supply zone or other relevant groupings i.e. two or more water supply zones depending on location of the supplies. 

4.          Some companies carry out operational monitoring of concessionary supplies and thus do not report results of monitoring to the Inspectorate. Compliance monitoring of concessionary supplies should be carried out at an appropriate frequency and the results reported to the Inspectorate in the usual way.

5.          Regarding 2004 and 2005 data for those water companies with concessionary supplies that wish to re-group their zones as described in paragraph 3 above, the Inspectorate will re-calculate the Operational Performance Index (6). If the calculations differ from those previously calculated, the Inspectorate will provide the re-calculated figures to Ofwat so they can assess whether there will any affect on the Company’s OPA.

6.          Those water companies wishing to re-zone concessionary supplies into one or more larger zonal units and have the OPI (6) recalculated, should advise Claire Pollard, Principal Inspector (Regulations) before 28 February 2005.  

7.    As indicated in Drinking Water 2004, the Inspectorate will not be using the OPI (6) in its annual reports on drinking water quality.   

8.    Copies of this letter are being sent to Pamela Taylor, Chief Executive, Water UK; Richard Wood, Water Supply and Regulation Division, Department for Environment, Food and Rural Affairs; June Milligan, Environment Division, Welsh Assembly Government; Colin McLaren, Drinking Water Quality Regulator for Scotland; Randal Scott, Drinking Water Inspectorate for Northern Ireland; Chairs of the Regional WaterVoice Committees; Rowena Tye and Tony Smith, Office of Water Services; Tony Warn, Environment Agency; Nigel Harrison, Food Standards Agency; and Gary Coleman at the Health Protection Agency.

9.   This letter is being sent electronically to Board Level and day to day contacts. Please acknowledge receipt by email to dwi.informationletters@defra.gsi.gov.uk.  Hard copies are not being sent but the letter may be freely copied.  Any enquiries about the letter should be addressed directly to Claire Pollard.

Yours faithfully

Prof. Jeni Colbourne MBE
Chief Inspector of Drinking Water