The Essential Services Commission were seeking to design a new framework for implementing their new approach to pricing water in Victoria. This proposed framework, entitled ‘PREMO’ (Performance, Risk, Engagement, Management, Outcomes), will incentivise water businesses to work with their customers and deliver outcomes that reflect customers’ priorities.
The PREMO framework requires a business to use customer engagement to identify the outcomes that customers require and manage risk, cost and resulting outputs, to deliver those customer outcomes and whose performance the business must manage and be accountable to customers.
KPMG was engaged to develop the Commission’s assessment framework, performance monitoring arrangements and price adjustment mechanisms.
Our detailed three-part report covers a practical application of the PREMO framework, the PREMO Assessment Tool and an outline of detailed questions and lessons and assessment frameworks from implementing PREMO in the UK.