Common Value Framework – Valuing the benefits of investments in a robust, consistent and comparable way  

We are delighted to share the final Water Industry Common Value Framework (CVF) created to enable consistent and comparable best value investment planning for PR29 and beyond. The CVF provides a repository of monetary values for investment outcomes common to the UK water sector with a clear and robust audit trail. A common approach to defining value can support comparability between companies, support company and regulatory decision making and help to prioritise nature-based and innovative solutions.

The framework is aimed at technical leads on value assessment in water companies and is intended to be implemented using a decision-support tool, although this is not a prerequisite for application.

With the aim to support a common definition of “best value” in the water sector, the CVF will enable a fair assessment of the key role that nature-based solutions have in addressing multiple pressures, while delivering multiple benefits and providing resilience to our water systems in order to incentivise their long-term investment and delivery. We’d love to hear how people are using the CVF to be able to understand use cases and allow us to share best practise – please contact CVF@arup.com.

The development of the Common Value Framework over the last two years has been a collaborative process, driven by the Ofwat Funded Mainstreaming Nature-Based Solutions Programme and guided by a cross-company Implementation Group of industry experts and a Regulatory Check and Challenge Group. We have engaged with a diverse array of stakeholders including Decision Support Tool providers, local authorities, and NGOs who have provided insights into their perspectives and approaches in assessing value.

Our efforts have been rigorously challenged and refined by the Mainstreaming NbS Technical Working Group, Project Board and Policy and Implementation Board, consisting of representatives from other groups and sectors, to increase the framework’s robustness and credibility.

It has been designed to meet the requirements of the current regulatory framework including Price Reviews and statutory planning where possible and specifically to align with the Environment Agency’s approach to Natural Capital including the recently released NCEM (Natural Capital Evidence Metrics).

Whilst this is the final version of the Common Value Framework for now, we do expect that it will require ongoing maintenance and updating over time. For suggestions for future iterations of the CVF, please contact CVF@arup.com.

The development of the CVF has benefited from significant involvement from stakeholders across the water sector and beyond. Thank you for all of your contributions to get the CVF to this point, a great example of cross-sector collaboration, helping to drive better value for communities, society and the environment.

The CVF Team