The Independent Water Commission’s proposals should ensure that the price review system is reshaped so that its system of incentives creates a culture of improvement. The price review should contain a comprehensive but straightforward set of performance metrics that matches public expectations and national targets for water. Targets should be stretching but realistic and never set basic expectations. Incentives to meet these targets should reward consistent improvement that is demonstrably at...

The Independent Water Commission’s proposals should ensure that the price review system is reshaped so that its system of incentives creates a culture of improvement. The price review should contain a comprehensive but straightforward set of performance metrics that matches public expectations and national targets for water. Targets should be stretching but realistic and never set basic expectations. Incentives to meet these targets should reward consistent improvement that is demonstrably attributable to the work of the company and only penalise regressions. (Recommendation, Paragraph 48) Regulatory environment Type: conclusion | Number: 18 | Response status: response_pending