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Media centre
Ofwat today published for consultation the work it intends to carry forward as it prepares for a change of governance when the new Water Services Regulation Authority is established. The draft Ofwat Forward Programme sets out the key areas for the next three years, including protecting customers by monitoring company performance, implementing the water supply licensing regime, and evaluating the 2004 price review to learn lessons for the future. Protecting customers Ofwat will continue to protect all customers by monitoring and publishing annually the performance of water companies across a broad range of indicators, including leakage from water pipes and the operation of customer telephone call centres. Water competition The new water supply licensing regime, which is being created as a result of the Water Act 2003, will allow business customers that use at least 50 megalitres of water per year the choice to remain with their existing water company or move to a new water supplier. This will apply to about 2,300 customers who collectively spend around £210 million each year on water. Ofwat has set out the process that will enable companies to apply later this year for licences to become new water suppliers. Ofwat will work with the existing water companies, new licensed suppliers and customers to monitor this emerging competitive market. Evaluating the 2004 price review The new price limits announced by Ofwat last month will come into effect on 1 April 2005. Each water company has until 1 February 2005 to ask the Director General to refer its price limit package to the Competition Commission for reconsideration. Ofwat has appointed a steering group comprising four independent members and led by John Baker, one of Ofwat's non-executive advisory directors. The steering group will involve stakeholders in its review of the price setting process and outcomes. The terms of reference for the group will be published shortly. Its report will help to inform Ofwat's early thinking on the next price review in 2009. Separately, Ofwat will consult on the timing of the subsequent review after 2009. Notes: 1. The Director General of Water Services is the economic regulator of the water and sewerage companies in England and Wales. He exercises his powers in a way that he judges will allow them to carry out their functions properly, and finance them. 2. The 'Ofwat forward programme 2005-06 to 2007-08 – Draft for consultation' will be available on the Ofwat website, www.ofwat.gov.uk, or from the Ofwat library on 0121 625 1373. 3. Responses should be sent, preferably by email, to forwardprog@ofwat.gsi.gov.uk or in writing to Roger Dunshea, Director of Operations, Office of Water Services, Centre City Tower, 7 Hill Street, Birmingham B5 4UA, to be received by 4 March 2005. Responses will be placed in our library and on our website. Out of hours enquiries to pager: 08700 555 500 water 503. Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk  | ||||||
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