Updating a social valuation framework for a water company
Summary
Little Blue Research supported the price review process of a UK water company in collaboration with an economics consultancy. This included updating the clients’ approach to social valuation while ensuring alignment with UKWIR’s latest guidance.
Client description
Capitals
UK based water company
Mid-size
NATURAL
SOCIAL
HUMAN
Client need
Little Blue Research were approached to support the review and update of the client’s social value framework, in collaboration with an economics consultancy. Topics covered included:
o Drinking water quality (health-based valuation)
o Employee health and safety (health-based valuation)
o Traffic and transport disruption (noise and time disruption valuations)
o Environmental impacts (protected areas, sites of scientific interest and coast habitat valuation).
The challenge
Understanding the existing social valuation model with only partial documentation.
Including consideration of the likelihood and risk of different ‘events’ as part of the valuation model.
The results
An updated version of the client’s social value framework including:
o health costs associated with changes in drinking water quality and employee health and safety
o noise and time disruptions associated with traffic and transport disruption during maintenance
o impact of pollution incidents on protected areas, sites of scientific interest and coast habitats.
