Scope
Reference
PROC.0195
Description
Undertake modelling work and produce quantitative models of the costs and risks of different credit and collateral arrangements in the business retail market, together with supporting documentation.
The Supplier shall provide the following Deliverables to the Customer as part of the Services:
(1) Review the 2016 model of credit support costs to understand principal inputs, outputs and parameters, taking into account any relevant feedback Ofwat may have received regarding that modelling and updates to the modelling documentation. This shall be a Word document.
(2) Develop and produce an understanding of prepayment and post payment timelines regarding Retailer payments to Wholesalers, as specified under the Wholesaler Retailer Code The Supplier shall provide the following Deliverables to the Customer as part of the Services:
(1) Review the 2016 model of credit support costs to understand principal inputs, outputs and parameters, taking into account any relevant feedback Ofwat may have received regarding that modelling and updates to the modelling documentation. This shall be a Word document.
(2) Develop and produce an understanding of prepayment and post payment timelines regarding Retailer payments to Wholesalers, as specified under the Wholesaler Retailer Code (WRC) business terms (WRC Schedule 1 Part 2 Business terms §9 Billing and terms of payment - Available at: Market Codes - MOSL).
(3) Develop and produce a quantitative model of impacts on and costs for a Retailer of providing different levels of collateral, under the payment timetables established in step (2). Principal costs should include the costs working capital and collateral. Modelling work should include sensitivities to four credit options. This shall be an Excel model.
(4) Develop and produce a quantitative model of risk exposure and costs for a Wholesaler under different credit options. Sensitivities should include Retailer collateral provided as a proportion of a Wholesaler's total exposure, probability of Retailer default, and four credit options. This shall be an Excel model.
(5) Write guidance documentation to explain and accompany both models, with a view to enabling external stakeholders and interested parties to understand and comment on the models and modelling assumptions. This shall be a Word document.
Modelling work is to be carried in collaboration with Ofwat and relevant interim support. The quantitative models must be of a sufficient standard and robustness to be published on the Ofwat website.
Contract 1
Supplier
Contract value
- £50,000 excluding VAT
- £60,000 including VAT
Below the relevant threshold
Date signed
19 November 2025
Contract dates
- 28 November 2025 to 31 March 2026
- Possible extension to 31 August 2026
- 9 months, 3 days
Description of possible extension:
The Customer reserves the right to extend [or modify] the Agreement by contract duration and/or contract cap up to an additional 50% of the original value under the conditions set out in Regulations 74(1)(c) and 74(4)(b) (meaning of 'below-threshold modification') of the Procurement Act 2023.
Estimated extension end date provided but may not be taken up.
Main procurement category
Services
CPV classifications
- 79400000 - Business and management consultancy and related services
Contract locations
- UKC - North East (England)
- UKD - North West (England)
- UKE - Yorkshire and the Humber
- UKF - East Midlands (England)
- UKG - West Midlands (England)
- UKH - East of England
- UKI - London
- UKJ - South East (England)
- UKK - South West (England)
Procedure
Procedure type
Below threshold - without competition
Supplier
Cubelynx Limited
- Companies House: 11853530
3 Waterhouse Square
138-142 Holborn, LONDON
EC1N 2SW
United Kingdom
Email: info@cubelynx.com
Website: https://cubelynx.com/
Region: UKI31 - Camden and City of London
Small or medium-sized enterprise (SME): Yes
Voluntary, community or social enterprise (VCSE): No
Contract 1
Contracting authority
The Water Services Regulation Authority
- Public Procurement Organisation Number: PPCX-7855-VXBT
Ofwat, Centre City Tower, 7 Hill Street
Birmingham
B5 4UA
United Kingdom
Email: procurement@ofwat.gov.uk
Website: http://www.ofwat.gov.uk
Region: UKG31 - Birmingham
Organisation type: Public authority - central government