The Asset Inventory: A Simplified Alternative Approach
ISBN: 1 84057 597 2
Asset inventories have been submitted to Ofwat by water companies in England and Wales in support of company Business Plans for the last four Periodic Reviews. The PR09 asset inventory included information on the quantity, condition and value of the asset base. Companies have deployed significant resources for completing the asset inventory in the past. The research sought to identify Ofwat's requirements for the asset inventory in the future, taking account of the emerging future regulatory framework, and to propose a simplified alternative approach that would meet Ofwat's requirements at future Periodic Reviews. The project developed recommendations that included: rationalising the asset stock, taking account of Owat's requirements for accounting separation; focusing condition grading on asset types for which Ofwat's serviceability outputs are not effective at monitoring maintenance; and moving towards greater use of indexation of asset values, rather than the requirement for costly periodic full asset revaluations.
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