The Regulators’ Alliance for Progressing Infrastructure Development (RAPID) is seeking market feedback on how to enable future water project development.
RAPID comprises the three water regulators Ofwat, Environment Agency and Drinking Water Inspectorate, which works as a single interface with the industry to promote the development of national water resources infrastructure.
The consultation will seek views on matters including the development of a “coherent and standardised framework for the commercial structures”, referencing the Direct Procurement for Customers (DPC) model.
A framework with common standards to “unlock programmatic benefits” is being considered, by developing a standardised commercial structure and risk allocation to attract a lower cost of capital.
As part of Ofwat’s efforts to significantly improve water supply across the country, many water companies are using the DPC model to deliver a range of capital improvements, to ensure greater competition and reduce costs to water ratepayers.
Responses are due 29 February 2024. The tender can be found by clicking here.