Pricing and Contractual Framework

The 2005 QCA report on GAWB’s pricing policies and practices endorsed GAWB’s proposed commercial framework which is designed to achieve sustainability by balancing GAWB’s requirement to achieve returns commensurate with its risk profile and the "good" use and management of water. GAWB is assessed to be a low risk business by the QCA, and therefore entitled to relatively lower rates of return. GAWB’s imperative is to ensure that it is mindful of the risk/return balance as its risk profile changes through the lifecycle of its major investments.

This endorsement underpins GAWB’s efforts to more precisely describe the service and product that it has for sale. Clarity around such matters is important, because it helps to identify the parameters within which GAWB is able to act to meet the requirements of its customers.

GAWB has two forms of standard contracts:

• Water Supply Contract (no delivery) for supply of quantities of water at the source, with delivery provided by a third party

• Water Supply contract (with delivery) for supply of water at the customer delivery points.