2025 ERA External Regulatory Assurance (2025 0191- WS3202969892)

Lot 1 – Technical Assurance

. Engineering design and technical scope

. Optioneering and option-selection processes

. Alignment between need, scope, solution and outcomes

. Deliverability and programme milestones

. Asset-management evidence and decision-making

. Risk registers and technical risk assessments

. Scope changes and change-control processes

. Data lineage, data quality and evidence trails

. Consistency with PR24 submissions, previous regulatory submissions and agreed assumptions

. Environmental, statutory and regulatory drivers

. Dependencies between schemes, programmes and strategic plans

. The completeness, accuracy and robustness of technical evidence used to support Board and regulatory submissions

Lot 2 – Cost & Efficiency Assurance

. Cost-estimating methodologies

. Unit rates and cost build-up assumptions

. Comparative cost assessment and benchmarking including a range of econometric techniques

. Cost drivers and explanatory factors

. Risk, uncertainty and optimism-bias allowances

. Scope-cost alignment

. Allocation between base and enhancement expenditure

. Cost escalation and inflation assumptions

. Change control and change-control processes

. Including, but not limited to checking Stata code and excel packages

. Material movements from PR24 assumptions or other established benchmarks

. Evidence quality and auditability

. Consistency between costs, identified needs, benefits and expected outcomes

Lot 3 – Financial Assurance

. PR29 financial data tables and associated working papers

. Anglian’s use of Ofwat’s financial model

. Feeder models used to populate Ofwat’s financial model

. Financial model controls, including version control, formula integrity, change control, access control, input checks and output reconciliations

. Documented processes for preparing, reviewing, approving and submitting financial information

. Data lineage from source systems, working papers and feeder models through to final submission tables

. Consistency between financial data tables, the financial model, business plan narrative, Board papers and assurance statements

. Financial assumptions, including inflation, interest rates, dividend assumptions, gearing, PAYG, RCV run-off and other relevant financial parameters

. Financeability assessments using both actual and notional capital structures