Jargon Buster

AMPAsset Management Plan period – the five-year regulatory price control periods since privatisation. AMP6 was the sixth AMP since privatisation and ran from 1 April 2015 to 31 March 2020. AMP7 is the seventh AMP since privatisation and will run from 1 April 2020 to 31 March 2025. AMP 8 will run from 1 April 2025 to 31 March 2030.
C-MeXCustomer measure of experience. This measure of customer satisfaction for AMP7 replaces SIM as a measure of the service customers receive from their water company
CBPCompany Business Plan
CCWConsumer Council for Water, an independent body that represents customers’ interests relating to price, service and value for money as well as conducting independent research and investigating customers’ complaints relating to water quality
COGIndependent challenge group chairs meeting with Ofwat and CCW
CTSCost To Serve – how much it costs a water company to provide its services
D-MeXDeveloper measure of experience – new measure of developer satisfaction for AMP7
DefraDepartment for Environment, Food & Rural Affairs, a UK government department responsible for setting policies and regulations on environmental, food and rural issues. Defra sets the overall water and sewerage policy framework in England, including setting standards and drafting legislation
DMZDistrict Metering Zone
DWIDrinking Water Inspectorate. The DWI regulates the quality of the drinking water that water companies supply and ensures its safety and compliance with Water Quality Regulations
DWRMPDrainage and wastewater management plan
EAEnvironment Agency. The EA is the principal adviser to the UK Government and main body set up to protect and improve the environment in England and Wales. It works in collaboration with other organisations to reduce flood risk, promote sustainable development, and secure environmental and social benefits
ESGEnvironmental, social and governance – the three central factors in measuring the sustainability and societal impact of an investment in a company
Fast-track statusA status granted by Ofwat to a water company’s business plan, if the regulator judges it to be high quality, allowing companies earlier clarity on its plan
FBPFinal Business Plan
FDFinal determination – the regulatory settlement Ofwat gives each company to deliver for each five-year regulatory price control period
ICCIntegrated Control Centre – from which United Utilities plans, monitors and controls its operations, processing real-time data from across its network
Integrated Resource ZoneDescription of water resource areas in the North West of England that are linked together to provide a single continuous supply (includes Lancashire, Manchester, Liverpool, Cheshire and parts of Cumbria)
IRImpounding reservoirs
KPIsKey performance indicators. The company measures its performance against a range of operational and financial KPIs plus a variety of other metrics
LDTMLarge Diameter Trunk Mains
ODIsOutcome delivery incentives – the outperformance payments and penalties associated with operational performance against agreed regulatory target
OfwatIndependent economic regulator for the water and wastewater sector in England and Wales, responsible for protecting customers’ interests while ensuring water companies finance and conduct their functions effectively
OutperformanceWhen a company beats its performance targets
PPEPersonal Protective Equipment
PR19The Price Review process for AMP7, concluded in December 2019
PR24Planning is now underway for PR24, the Price Review process for AMP8
Price ReviewThe process through which each water and wastewater company submits a business plan for the next five-year period, and Ofwat sets the price and service package it must deliver
Priority ServicesA scheme aimed at customers who may need additional support with their water and wastewater services due to age, disability, illness, or other vulnerable circumstances
QAQuality Assurance
SIMService Incentive Mechanism – a measure of satisfaction with the service provided to customers by water companies, which operated from 2010 to 2019. Replaced by C-MeX and D-MeX from 2020
Systems ThinkingUnited Utilities’ approach to the way it operates its network and assets, which is a key value driver
TotexTotal expenditure – this comprises operating costs (opex), infrastructure renewals expenditure (IRE) and capital expenditure (capex)
UIDUnsatisfactory Intermittent Discharge
UKWIRUnited Kingdom Water Industry Research
UnderperformanceWhen a company fails to meet its performance commitment targets
Upper-quartilePerformance levels demonstrated by the top 25% of water companies
UUGUnited Utilities Group PLC, the listed group company
UUWUnited Utilities Water Limited, the regulated entity
WACCWeighted Average Cost of Capital
WRWWater Resources West, a group looking at supply and demand in western England
WINEPWater Industry National Environment Programme
WRcWater Research Council
WRMPWater Resources Management Plan
WTWWater Treatment Works
WwTWWastewater Treatment Works
YourVoiceThe independent customer challenge group whose aim is to ensure customers are at the heart of company business planning . Also known as the ICG or independent challenge group