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(Ofwat): Capital End of Year Flexibility Draw Down

Volume 501: debated on Tuesday 24 November 2009

Subject to parliamentary approval of HM Treasury agreement to capital end of year flexibility draw down in 2009-10, the capital element of DEL (CDEL) will increase by £80,000.

Resource DEL (RDEL) remains at £1,000 representing the ‘token vote’; no additional cash requirement is required.

The impact on resources and capital is set out in the following table:

New DEL£'000

Change

Voted

Non-voted

Total

Resource DEL

0

1

0

1

of which:

Administration budget*

0

1

0

1

Near cash in DEL

0

-234

0

-234

Capital **

80

480

0

480

Depreciation***

0

-189

0

-189

Total

80

292

0

292

*The total of the ‘administration budget' and ‘near cash in resource DEL' figures may well be greater than total Resource DEL, due to the definitions overlapping.

**Capital DEL includes items treated as resource in estimates and accounts but which are treated as capital DEL in budgets.

***Depreciation., which forms part of resource DEL, is excluded from the total DEL since capital DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

Changes in Capital DEL (CDEL)

The change in the capital element of DEL of £80,000 arises in a claim on capital end of year flexibility to cover the cost of Phase 2 of the new telephone switch system.