APPOINTMENT OF CHIEF EXECUTIVE CANDIDATE INFORMATION PACK AUGUST 2017
AN INTRODUCTION FROM JONSON COX, CHAIRMAN Water is not a dry issue. The water and waste water sectors provide genuinely essential public services that touch the lives of every person in the country every day. The government privatised the sector 27 years ago with a view to harnessing private capital and private sector management disciplines to improve standards of service for customers, and the quality of our natural environment. Ofwat was created to play a critical role in holding companies to account for delivering the ‘promises of privatisation’, and ensuring they deliver against the rising expectations of customers and society with ever-greater levels of efficiency. We take our role seriously. Ofwat’s regime is respected globally throughout the infrastructure world; a number of our recent innovations are followed with keen interest in the UK and internationally. Our regulatory model has the traditional regulatory tool kit but we deploy this alongside wider tools and strategies which help hold companies to account. We play a more important role now than ever before. The sector faces significant challenges in continuing to provide the services customers expect, in a resilient and sustainable way, in the face of population growth, lifestyle changes and climate change. Affordability remains a very significant issue for customers. And we have rightly challenged companies in recent years to pay attention to the resilience of their financing structures and their board leadership. We cannot be complacent: our board and people want to reach the top of our game - capable and brave. We are looking for a CEO who will take forward our innovative approaches, building on the success of recent years and striving to ensure public trust and confidence in the vital services we regulate which is at the heart of everything we do. We set out a ground breaking framework for our next price review, PR19, and aim to have settled our proposed methodology by the end of the year. The price review needs to be delivered successfully, in line with the ambition set by our board. The newly opened competitive business retail market in England is yet to bed down and we need to develop and embed our approach to regulating the market. And there is much still to do to ensure that the sector’s corporate and financial resilience is appropriate to the weight of its responsibilities. Our new CEO will combine the skills to deliver these priorities, while also possessing the personal, leadership and strategic qualities to take us into the 2020s.The board of Ofwat is ambitious for the sector and ambitious for Ofwat. Our Chief Executive will be critical in providing the leadership, alongside our senior team, that our organisation, and the sector, need at this key time. Thank you for your interest in joining us at this exciting time. We look forward to receiving your application. Jonson Cox Chair, Water Services Regulation Authority (Ofwat)
ABOUT OFWAT Ofwat is the economic regulator for the water and waste water sector in England and Wales. Ofwat regulates a sector with an enterprise value of £86bn, and which turns over £11bn each year. The sector provides vital public services, clean water supply, and the taking away of waste water, its treatment and safe return to the environment. Since privatisation in 1989 Ofwat has played a key role in ensuring these services are delivered, resilient over the long term, and at prices that are affordable. Ofwat’s role is to help it build trust and confidence with customers, the environment and wider society. Its strategic priorities include:
Working with the sector to improve the customer experience in particular by improving resilience, delivering a step change in customer service, maintaining affordability and driving efficiency. Improving information and transparency in the sector to hold companies to account. Supporting the development and ‘investability’ of markets, to enable the sector to deliver more for less. Securing stakeholder engagement and support for change. Ensuring Ofwat has the skills, experience, systems, processes and culture to deliver the strategy.
Ofwat’s focus as a regulator is on regulating in a pro-market way which means establishing an effective framework that improves information (e.g. its quality and visibility); improves buyers’ and sellers’ ability to transact (e.g. reducing ‘transaction costs’); and/or by improving incentives on buyers and sellers to transact efficiently. In addition, Ofwat will look to make targeted interventions only, rather than taking a prescriptive, one-size-fits-all approach. Ofwat recently launched its principal consultation on the way it sets price controls (the ‘methodology’), a precursor to its setting final price limits in December 2019. Ofwat will conclude this consultation in December 2017, at which point its focus will be on how to deliver a price review that seeks to drive considerable change in the sector, in line with its ambitions. Ofwat is accountable for delivering the strategic priorities and objectives set by both the Welsh and UK Governments, presently in draft, and which place considerable emphasis on maintaining affordability, securing long-term resilience and delivering excellent services to customers. In 2018 Ofwat will also be pushing forward with its framework for the regulation of the competitive market for business retail customers, with the year seeing our first ‘state of the market’ report as well as the inevitable casework and changes to the market architecture that will arise as the market beds down. In parallel Ofwat will also be taking forward our work to highlight the importance of financial and corporate resilience in the sector – continuing its pioneering work in this area. All of this makes it an exciting time to join the organisation.
THE ROLE The Chief Executive has the executive responsibility for the operational and strategic management of Ofwat. The Chief Executive has accountability for ensuring that Ofwat maintains a strong reputation for regulatory practice, particularly but not only through the delivery of the price review. As you would expect, the Chief Executive will need to establish, maintain and develop effective working relationships with:
Ministers and senior officials within UK and Welsh Governments; UK and global debt and equity investors (including institutional debt and equity investors, major pension funds, infrastructure funds and sovereign wealth funds and rating agencies ), to test and drive through changes it wishes to make to the regulatory regime; Chief Executives at water and waste companies - making clear the expectations Ofwat places on them, giving examples of best practice, making clear what will happen should companies fall short; and Other regulators, in particular those regulating the water and wastewater sector. Representing Ofwat at conferences and events, and using such events to develop its agenda, (events such as the Infrastructure Investor conference, Moody’s water industry conference, utility conferences, International Water Association conference, wider regulatory conferences and roundtables).
KEY RESPONSIBILITIES The Chief Executive will be responsible for:
Providing effective leadership across Ofwat, setting strategic direction, driving delivery and ensuring the right culture, values and behaviours through everything we do; Developing and implementing the economic regulatory strategy of Ofwat in a way which fully meets Ofwat’s statutory duties; Leading Ofwat’s delivery of the 2019 price review; Co-ordinating strategically the programmes of work across Ofwat and ensuring the office can respond flexibly and effectively to unplanned events; Leading the development and implementation of a regulatory regime in the water and wastewater sectors designed to make full use of all available tools including market and competitive forces so as to promote the interests of consumers and the long term sustainability of the sector; Ensuring Ofwat adopts and develops progressive regulatory practice, taking steps to ensure regulation does not impose any unnecessary burdens and that new policy is underpinned by sound evidence base and by sound business judgement; Taking executive responsibility for decisions within the delegations and policy frameworks set by Ofwat; Within guidelines to be agreed with the Chairman, sharing responsibility for managing relationships and communications with key stakeholders; Maintaining an environment in which each member of staff fully contributes, is encouraged to reach their potential and understands their role in delivering Ofwat’s strategy and forward programme; and As accounting officer, being accountable to Parliament for ensuring that Ofwat operates in line with Cabinet Office and other relevant controls on us, and ensuring that Ofwat operates in line with the principles of Managing Public Money.
PERSON SPECIFICATION The successful candidate will be a dynamic and communicative leader, capable of winning trust, and will bring:
KNOWLEDGE AND EXPERIENCE
Experience in undertaking or leading regulatory reviews, in particular, price reviews and complex enforcement cases; Senior management experience within an economic regulator or regulated company; Experience of working in an organisation which is independent in its operations, functions and decision making, while working within Government’s periodic strategic guidelines; Experience of working in a high profile public policy delivery area; Managing relationships with Government at a senior level; Understanding of the political dimensions of operating within a regulatory sector; Knowledge and awareness of the senior stakeholders relevant to Ofwat and the regulatory environment within which it operates; Knowledge of water and waste-water policy issues and regulatory frameworks;
SKILLS, ATTRIBUTES AND QUALIFICATIONS
Senior leadership and management skills, particularly an ability to inspire and lead a dynamic organisation, particularly in a project and programme management context; Ability to represent Ofwat at a strategic level internally and externally with partner organisations; Ability to establish effective working relationships with key stakeholders; Ability to think strategically, taking into account wider policy issues; Excellent written and oral communication skills; and A degree or post-graduate degree in economics, law or other suitable discipline.
TERMS OF APPOINTMENT Contract This is a permanent appointment. Salary This is a senior role and has recently been re-graded at the Senior Civil Service Pay Band 3 (Director General) level, having previously been at Senior Civil Service Pay Band 2 level. From 1 April 2017 the pay range is £107,000 to £208,100. Candidates can expect to achieve a starting salary in line with their experience and capability, with scope for progression. Existing Civil Servants will be subject to normal Civil Service pay rules, including for pay on promotion. Any salary at or in excess of £142,500 is subject to Ministerial approval. Salary is paid monthly by credit transfer. Location The role will be based in Birmingham and London. External meetings always draw the CEO towards London, and the CEO should expect to spend two full days a week in Birmingham where most of our staff are based.
Contracted place of work and taxable expenses Any person who regularly works more than two days a month in both the Birmingham and London offices, irrespective of their contracted place of work, is considered by HMRC to have two permanent workplaces. The payment of your rail fare, accommodation or subsistence in this situation attracts tax and National Insurance because you are receiving a benefit. Ofwat meets the cost of the tax and National Insurance by grossing up your expenses and recovering the net amount through your monthly pay package. But the expenses are classed as taxable earnings, which could impact on any attachment of earnings – for example, student loan repayments, high income child benefit and state benefits. For further information on taxable expenses, please email
[email protected]. Hours of work The post of CEO is full-time and the CEO is expected to devote their full working time to the role. You will be required to work such hours as are reasonable and necessary for the efficient performance of your duties. Annual leave On appointment the post holder will be entitled to 25 days annual leave plus 10½ days’ public and privilege holidays a year. Annual leave entitlement will be increased by one day for each year of continuous employment with Ofwat, up to a maximum leave allowance of 30 days. Pension On appointment, you are eligible to join the Civil Service Pension. The Civil Service offers a choice of defined benefit and stakeholder pensions, giving you the flexibility to choose the pension that suits you best. We offer you a choice of two types of pension. Alpha: alpha is an occupational pension scheme and provides a defined benefit worked out on a Career Average basis. From 1 April 2017, employee contributions will be based on actual salaries: Actual pensionable salary actual (£) Up to and including 21,422
4.60%
21,423 to 51,005
5.45%
51,006 to 150,000
7.35%
150,000 and over
8.05%
From 1 April 2017, employer contributions will be: Band
Salary Band (£)
ASLC rate from 1 April 2017
Band 1
23,000 and under
20.0%
Band 2
23,001 to 45,500
20.9%
Band 3
45,501 to 76,000
22.1%
Band 4
76,001 and over
24.5%
Prison Officers with reserved rights (pre-Fresh Start)
-
27.9%
Mini ASLC
N/A
0.5%
Partnership: this is a stakeholder pension with a contribution from Ofwat. How much we pay is based on your age. We pay this regardless of whether you choose to contribute anything. You do not have to contribute but, if you do, we will also match your contributions up to 3% of your pensionable earnings. The contributions are in addition to the age-related contribution mentioned above. To learn more about the Civil Service Pension schemes, please follow the link http://www.civilservicepensionscheme.org.uk/ Ofwat benefits We also offer a range of additional benefits. These include:
Flexible and agile working arrangements supported by the enabling technology including Surface Pro, Iphone and Skype for Business access to our package of benefits via our ‘Rewards on Tap’ scheme. This is a voluntary benefits scheme where staff have access to exclusive discounts on a range of goods and services such as retail outlets, theatre tickets, holidays, insurance and gym membership; childcare voucher scheme; cycle-to-work scheme; interest-free season ticket loan for travel between home and office; fees paid for membership of relevant professional bodies; appropriate professional development; health and wellbeing initiatives; and free eye tests and contribution towards lenses/spectacles for VDU users, if appropriate.
FURTHER INFORMATION Security clearance Any offer of appointment will be subject to satisfactory completion of security and pre-employment checks. Further information about the security checking procedure is available on request. Nationality and immigration control This post is open to nationals of states within the British Commonwealth and the European Economic Area (EEA) and certain members of their families. There must be no employment restriction or time limit on your permitted stay in the UK. If you would like further information on Nationality and Immigration Control, please email us at
[email protected].
Stocks or shares Because of the nature of the information you will come into contact with and the need to be wholly independent of the water sector in England and Wales, you and your family (including your spouse or civil partner and any children or step-children under the age of 18 who still live at home, or any other member of your household) will be precluded from owning, purchasing or dealing in the shares of the water companies and their holding companies.
HOW TO APPLY Saxton Bampfylde Ltd is acting as an employment agency advisor to Ofwat on this appointment. Candidates should apply for this role through our website at www.saxbam.com/jobs using code QJUN. Click on the ‘apply’ button and follow the instructions to upload a CV and cover letter, and complete the application and equal opportunities monitoring* form. The closing date for applications is noon on Monday 25 September 2017. If you are unable to apply through the website, please email
[email protected] quoting reference QJUN. * The equal opportunities monitoring online form will not be shared with anyone involved in assessing your application. Please complete as part of the application process.
Expenses We will refund travelling costs at the rate of standard rail fare for the journey or motor mileage rates (cars: 25p per mile). Please note that proof of purchase will be required for all public transport expenses. We cannot refund expenses for travel into the UK. If you have to stay overnight, please contact
[email protected] for further details. Diversity Ofwat aims to be an equal opportunities employer. We intend to make sure that there is equality of opportunity and fair treatment for all irrespective of: age; disability; gender reassignment; marriage and civil partnership status; pregnancy and maternity; race, religion or belief; or sex or sexual orientation. We would like to assure you that we will treat the information you provide on the diversity monitoring form in the strictest confidence and only use it to help us monitor appropriate equal opportunities policies. This information plays no part in our selection process.
Investors in People (IIP) Ofwat has IIP accreditation which reflects good management practices throughout our organisation, including in business planning, individual objective setting, learning and development opportunities, as well as continuous constructive feedback through our delivery and development conversations approach to performance management. Civil Service Commission The process of recruitment and assessment embraces the principles of fair and open competition and best practice. The first is to maintain the principle of selection for appointment to the Civil Service on merit on the basis of fair and open competition as outlined in the Civil Service Recruitment Principles. The second is to promote an understanding of the Civil Service Code which sets out the constitutional framework in which all civil servants work and the values they are expected to uphold, and to hear and determine appeals made under it. This appointment is being overseen by the Civil Service Commission, which regulates recruitment to the Civil Service, providing assurance that appointments are on merit after fair and open competition. The Commissioner for this appointment, Angela Sarkis, will chair the selection panel. This panel will also include Jonson Cox, the Chair of Ofwat, Tim Waggott, Non-Executive Director and Sonia Phippard, Director General for Marine, Natural Environment and Rural, Defra. Complaints Procedure If feel your application has not been treated in accordance with the recruitment principles and you wish to make a complaint, you should contact Natasha Harris, Director, Operations (People), Ofwat, Centre City Tower, 7 Hill Street, Birmingham, B5 4UA in the first instance. If you are not satisfied with the response you receive from Ofwat you can contact the Civil Service Commission via any of the following routes: In writing to: Civil Service Commission, G/8 1 Horse Guards Road, London SW1A 2HQ Via Email to:
[email protected] Or call on: 020 7271 0831 Civil Service Code As a civil servant, you are appointed on merit on the basis of fair and open competition and are expected to carry out your role with dedication and a commitment to the Civil Service and its core values: integrity, honesty, objectivity and impartiality. The full Civil Service Code can be found here: https://www.gov.uk/government/publications/civil-servicecode/the-civil-service-code
STRICTLY CONFIDENTIAL Please complete this form through our website at www.saxbam.com/jobs using code QJUN.
POSITION APPLIED FOR Chief Executive Job code: QJUN SURNAME
FIRST NAME
INITIAL(S)
TITLE
ADDRESS FOR CORRESPONDENCE
CONTACT TELEPHONE NUMBER(S)
EMAIL ADDRESS
LATEST EMPLOYER (ORGANISATION)
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SALARY
Ofwat follows the Positive about Disabled People scheme under which disabled applicants can request a guaranteed interview provided that they meet the minimum criteria for the role. Please tick here if you would like to be considered under the scheme……………
Equal Opportunities Monitoring Form Ofwat is committed to a policy of equal opportunities. We aim to provide equal opportunity in employment, career development and promotion to all that are eligible on the basis of ability and qualifications. We want to ensure that our policies are working in practice and to do this we need details of applicant’s age, gender, ethnic background, religious belief, national identity and any disability. The information in this part of the application form will not be made available to the selection panel – this is to ensure that the information you provide is treated confidentially and does not affect your job application.
Section A – Gender and Disability (please delete as appropriate) Name:
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