OMG 36/14/02
OUTPUTS MONITORING GROUP
OMG REPORT (Q2 2014-15)
Introduction
Scottish Water plays a key role in supporting the achievement of the Scottish Government’s five
Strategic Objectives of a Healthier, Smarter, Greener, Wealthier & Fairer and Safer & Stronger
Scotland.
In October 2009, Scottish Ministers confirmed what Scottish Water is to deliver over the five year
investment period from 2010 to 2015 for customers in the form of Ministerial Objectives. These set
out the expected improvements to the quality of drinking water and to protect the environment, the
requirements to support economic growth in Scotland and the minimum standard of service that
Scottish Water’s customers can expect to receive.
Their expectations include completing any
unfinished projects from the two previous investment periods: 2002-06 and 2006-10.
Scottish Water’s Delivery Plan (2014-15) sets out what customers can expect to receive from
Scottish Water in terms of physical ‘outputs’ i.e. work that will benefit customers, and by when. Since
each output is linked to a Ministerial Objective, the delivery of all outputs signifies that all of the
Ministers’ requirements have been fulfilled.
This document summarises what has been achieved for customers against Scottish Water’s Delivery
Plan (2014-15) and confirms the position up to the end of September 2014 (Quarter 2 2014-15). It
has been prepared for the Output Monitoring Group (OMG) which was set up by Ministers to monitor
and report on the delivery of their Objectives.
The Output Monitoring Group comprises the main stakeholders in Scotland’s water industry: Scottish
Government, Scottish Water, Citizens Advice Scotland, Scottish Public Services Ombudsman and
the regulators (the Water Industry Commission for Scotland, the Scottish Environment Protection
Agency and the Drinking Water Quality Regulator).
It is chaired by Scottish Government and
operates under a Terms of Reference agreed by Ministers.
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What We Monitor
Every three months (each quarter) OMG assesses Scottish Water’s progress with the delivery of
outputs using the metric, Overall Measure of Delivery (OMD) score, to measure Scottish Water’s
progress against targets agreed in its Delivery Plan. A further set of outputs, including customer
service measures, are reported annually at the end of each financial year.
Overview of Investment Delivery Performance
The Overall Measure of Delivery provides a high level measurement of Scottish Water’s progress
against its Delivery Plan; it assesses the progress of the investment outputs monitored by OMG
across each of the five key delivery milestones, combining this information to give an overall score.
Progress with the unfinished projects from previous investment periods and growth schemes are not
included in OMD and are reported separately.
At the beginning of the programme the OMD score starts at zero and ends at 250 points confirming
that all outputs monitored have been delivered.
As a result of the programme being worth a
maximum of 250 OMD points, reported performance will ultimately converge to the target line as the
programme comes to an end.
Performance is considered to be ‘on target’ if it is within 2.5% of the agreed OMD score. At the end of
September 2014 Scottish Water’s OMD score was 230 points, within the target range for this quarter
of 228 to 240. Scottish Water’s performance is illustrated in Figure 1. While performance remains
within range, Scottish Water recognise that a continued focus on delivery of the remaining outputs
will be required over the final six months of the programme to ensure the OMD remains on target.
Figure 1 – Overall Measure of Delivery Score
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Delivery progress is also monitored against the targets set for individual programme areas in the
Ministerial Directions and in Scottish Water's Delivery Plan. Appendix 1 confirms actual performance
in each of the quarterly monitored programme areas, measured against the relevant regulatory ‘sign
off’ targets for the current quarter.
Conclusion
Overall, the OMG recognises the progress that Scottish Water has made to date in the current
regulatory period and accepts that it is normal in a large investment programme of this type for some
elements to be delivered ahead of, and others behind, the planned delivery dates. However, while
overall progress remains on target, concerns have been raised by the OMG about progress with
delivery of the remaining elements of the programme. Scottish Water has assured OMG that it
recognises the need to maintain a strong focus on delivery of the remaining elements of the
programme and has identified remedial actions to minimise delays and ensure that benefits to
customers are delivered as soon as possible.
Appendix 1 provides further information on
performance.
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Appendix 1 – Quarterly assessment of progress against targets for each programme area
Status is recorded as ‘ahead of target’, ‘on target’ or ‘behind target’ according to the actual position
as compared with Scottish Water’s Delivery Plan. Those programme areas where the Ministerial
Objectives have been delivered are marked as ‘complete’. The year end position is graded using the
Red-Amber-Green-Blue coding set out in the glossary at the back of the paper.
ACTUAL
Q2 2014-15
Position
FORECAST
Year end
Position
ahead
Green
Number of water treatment works improved
behind target
Red
Number of zones with reduced lead levels
behind target
Red
Number of DMAs subject to investigations
completed
Blue
ahead
Green
on target
Green
ahead
Green
completed
Blue
ahead
Amber
behind target
Green
Works associated with the Commonwealth Games
completed
Blue
Improvements to the wastewater network (properties)
completed
Blue
Number of UIDs improved (under 7-stage)
behind target
Amber
Non-strategic UIDs and dual manholes addressed
behind target
Green
Number of improved wastewater discharges
behind target
Red
Compliance with wastewater licences
ahead
Amber
Surface Water outfalls improved
ahead
Green
Number of environmental studies undertaken
on target
Green
Malodour
Number of sites where malodour is reduced
completed
Blue
Flood Management
Duties under the Flood Risk Management Act
behind target
Red
Customer Service
Number of properties removed from low pressure register
ahead
Green
Completion of past
investment
Projects remaining in the Q&S3a (2006-10) programme
behind target
Red
Projects remaining in the Q&S2 (2002-06) programme
completed
Blue
OMG Grouping
Quarterly monitored programme areas
Mains rehabilitation
Drinking Water
Quality
Raw water sampling and treatment
Number of lead communication pipes removed
Measures to protect Water Quality
Number of sites covered by drinking water safety plans
Security and Emergency Measures Direction (SEMD)
Security of Supply Improvements
Environmental
Protection
Summary
December 2014
Programme areas completed
6 of 23
On or ahead of target (from remaining programme areas)
9 of 17
Behind target (from remaining programme areas)
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Of the 23 output programme areas that are reviewed quarterly by the Output Monitoring Group, 6
areas are completed, 9 are ‘on/ahead’ of delivery milestone targets and 8 areas are assessed as
‘behind target’.
The commentary below relates to programme areas currently assessed as ‘behind target’ and not
forecast to recover by 31 March 2015:
Number of water treatment works improved: This programme is currently behind target, delivering
50 outputs against a target of 69. The programme is not expected to recover by year end. 14 of
the delayed outputs are associated with implementing measures to reduce the risk from
cryptosporidium where commissioning issues have delayed completion. Scottish Water is working
closely with delivery partners to address the commissioning issues as quickly as possible. A
further 4 treatment works improvements are behind target; Loch Maree and Forehill have
achieved water in to supply but regulatory sign-off has been delayed pending defect resolution
and testing which is being expedited; Lochenkit has been delayed to align with work at Killylour
where a ‘maining out’ solution is now proposed. Disinfection improvements at Kilmuir treatment
works were delayed due to contractor insolvency but are now progressing.
The remaining
delayed output at Craighead has been removed from the programme in agreement with DWQR; a
capital maintenance solution for Craighead is being considered for the 2015-21 period.
Number of zones with reduced lead levels: Although this programme has now delivered 62
outputs, it is currently 2 outputs behind its Quarter 2 target. The final two outputs are at Kaim and
Terregles. Kaim is undergoing commissioning and is expected to achieve sign off by the end of
the year, but the output at Terregles, which is linked to the delayed project at Killylour, will not.
Number of improved wastewater discharges: This programme is 16 outputs behind target due to a
number of delays experienced throughout the design and delivery stages.
Scottish Water is
working to deliver two of the remaining projects at Mauchline and Balmaha within the current year
and continues to scrutinise the programme closely to ensure it does not experience further delays.
The other outputs which are behind target are associated with projects at Inverurie, Neilston and
Stromness which are now expected to be completed in 2018/19. The lessons learned from this
programme, including better scope definition and design, are being incorporated into the delivery
programme for the next regulatory period.
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Duties under the Flood Risk Management Act: The programme has delivered 386 outputs, 1
output behind target. The Edinburgh Integrated Catchment Study, which is a partnership with
three Local Authorities, is forecast to extend to July 2015.
Projects remaining in the Q&S3a (2006-10) programme: The programme is 1 output behind target.
The last project is at Killylour and although plant performance on water quality is good, issues
around membrane throughput identified during commissioning are preventing the works being
placed into supply and have led to a delay in acceptance. Scottish Water notes that it is likely that
a pre-treatment stage will be required and completion will be post March 2015.
The commentary below relates to the 3 programmes that are behind target at 30 September 2014 but
are expected to recover by 31 March 2015.
Security of Supply Improvements: The programme is currently 1 output behind target as a result of
hydrological complexities and the necessary revisions to CAR licenses delaying starting on site.
Scottish Water forecasts the programme to be on target for the year end.
Number of UIDs improved (under 7-stage): This programme has delivered 71 outputs, 19 behind
its Q2 target. Scottish Water expects to deliver 57 further outputs by March 2015 and exceed the
year-end target but there are risks to this year-end target given the large number of outputs
remaining.
Non-strategic UIDs and dual manholes addressed: The non-strategic UIDs programme is 1 output
behind target. There are reliability issues at Port Rodie pumping station (Loch Ryan) and work is
in hand to improve this issue. As previously reported the dual manholes addressed programme is
complete.
The commentary below relates to the programme areas that are ahead of target at 30 September
2014 and at risk of not completing by 31 March 2015.
Compliance with wastewater licences: This programme is delivering 282 outputs. 1 output behind
target - Perth Inlet WWPS - is at risk of not achieving sign-off by March 2015.
Security and Emergency Measures Direction (SEMD): This programme is a combination of
2 programmes, one of which is completed (the number of tanker fill points installed) and one
currently ahead of target (the number of sites with increased security). The ‘sites with increased
security’ programme is at risk of not achieving the year-end target, with 6 outputs currently at risk.
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Meeting Growth Needs
Scottish Water also provides additional water and waste water capacity, as and when required, to
support the Scottish Government’s aim of increasing sustainable economic growth in Scotland.
Scottish Water confirmed that by the end of September 2014 it had provided additional water
capacity for around 52,000 people and waste water capacity for approximately 31,000 people since
April 2010, meeting the on-going Ministerial requirement for the 2010-15 period.
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Glossary of Terms
Assets
Climate Change Adaption
and Mitigation
Delivery Plan
DMA
Leakage
Ministerial Objectives
Outputs
Outputs Monitoring Group
(OMG)
Overall Measure of Delivery
(OMD)
Overall Performance
Assessment (OPA) Score
UID
WWTW
Physical plant and equipment used to produce and transfer
water, to collect and treat waste water such as water treatment
works and water mains, sewers and sewage works etc.
‘Adaptation’ is the action taken by Scottish Water to increase the
resilience of its assets to climate change variability and
extremes whereas ‘mitigation’ is the steps to permanently
eliminate or reduce its carbon emissions associated with its
activities.
Scottish Water’s annual statement of investment outputs and
financial targets.
District meter areas (DMA) help to identify any localised leakage
by the installation of online flow monitors.
The water lost from Scottish Water’s network of water pipes and
its assets (service reservoirs etc.) between putting water into
supply and it arriving at customers’ taps.
A statement of requirements (deliverables) set out by Scottish
Ministers.
Tangible deliverables, such as an improved waste water
treatment facility, which benefit customers, the environment or
both.
Representatives of Scotland’s water industry who are
accountable for the monitoring the progress of output delivery.
The metric used to assess Scottish Water’s delivery of its
investment-related outputs.
A comparative overview of company performance which is
calculated each year. It covers measures of water supply,
sewerage service, customer service and environmental
performance.
Unsatisfactory Intermittent Discharges. An overflow on the
sewer network that requires to be improved so as to meet
environmental standards for the water body into which it
discharges or which it affects.
A waste water treatment works (WWTW) treats waste water
before returning it to the environment.
Red
Progress is behind target at the year end
Amber
At risk of not delivering the output by year end
Green
On programme at year end
Blue
Output completed
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