Scottish Water - Delivery Assurance Group: performance progress report - quarter four 2022-2023

9. Conclusions

The DAG is invited to note that:

• Year 2 Tier 2 Investment to the end of Q4 2022/23 was £687m made up of planned repair and refurbishment (£405m), enhancement (including flooding) (£182m), growth (£75m) and Support (£25m). It includes £61m invested on the delivery of projects that were planned to be completed in the previous period. This is an increase from £623m in 2021/22 - a step up in investment to the benefit of customers.
• The IPOD indicator is back on track at 609 points, against a range of 564 to 683 points. demonstrating that the overall programme is on track.
• Notwithstanding an improved position Scottish Water are experiencing delay in achieving Acceptance on a number of water and wastewater projects as delivery risks are realised – broadly due to scope variations; third party risks; construction risks and challenging construction market conditions. Scottish Water continue to monitor service risk and the impact on customers on these projects. Where appropriate, and if necessary, temporary mitigation is put in place to maintain service. In addition, learning is being taken for new additions to the Committed List whilst maintaining the aim of setting realistic but challenging forecasts. This is in keeping with the principles of the new IPPF framework under which Scottish Water look to set forecasts, monitor variances and take on board learnings.