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UKWIR facilitates collaborative research for
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Serviceability Methodologies: UKWIR Report Ref No 12/RG/01/4

Stable serviceability has been Ofwat's requirement for capital maintenance expenditure set at periodic reviews for water companies in England and Wales. This report reviews the purpose of serviceability, how it has evolved over recent periodic reviews, and stakeholder views on its effectiveness. The report also looks at approaches adopted in other sectors and jurisdictions (both in UK and internationally) and it considers the impact of Ofwat's emerging approach to future regulation. Taking account of the review's findings, the report recommends refocusing serviceability from asset capability to service risk outcomes. It makes proposals for a self-assessment framework intended to give companies greater ownership of serviceability and freedom to define indicators, including indicators of service risk, network capacity, and critical asset condition. A role for stakeholder groups in challenging serviceability outcomes is proposed and a continuing need for assurance of serviceability is identified.

The printed report may be purchased from the UKWIR website for £20, or downloaded free of charge as a PDF here