Legal Advisory Services for Ofwat's Direct Procurement for Customers Initiative – Manchester and Pennines Resilience Scheme

About

Water Services Regulation Authority (Ofwat) awarded a contract to Sharpe Pritchard LLP for legal advisory services under Lot 2 of Ofwat's Direct Procurement for Customers (DPC) initiative, Work Package 002, concerning the Manchester and Pennines Resilience Scheme.

The contract, valued at £180,000, required the provision of legal advice to Ofwat regarding the procurement by United Utilities Water Limited of a competitively appointed provider (CAP) for the scheme, which addresses the risk of failure of United Utilities' largest potable water aqueduct supplying 2.5 million people in Greater Manchester and the Pennines.

The scope included advising Ofwat on United Utilities' intended and actual procurement of a CAP, including compliance with procurement law; advising on the terms of draft agreements between United Utilities and the proposed CAP; advising on the exercise of Ofwat's regulatory functions under the Water Industry Act 1991 and United Utilities' instrument of appointment (licence) as a water and sewerage undertaker, including licence conditions imposing requirements on United Utilities in relation to the procurement and operation of DPC projects; and reviewing papers for, and if necessary attending, internal Ofwat meetings.

The objective was to support Ofwat in ensuring that, where DPC is used, consumer interests are protected, value for money is achieved, and appropriate assurances are received from water companies that their duties will be met to an equivalent or better standard compared to traditional delivery routes, while minimising the risk of challenge to Ofwat's decisions on DPC projects.