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Media centre
Existing water companies have indicated the prices they could charge water supply licensees for access to their supply systems. The 'indicative access prices', published at the end of August as part of the preparation for the new water competition regime, will help licensees discuss the options for changing water supplier with large business customers. They are a first indication of the prices that licensees will be charged if they are successful in attracting customers, but the actual price will depend on individual negotiations. Ofwat, which gave the existing companies guidance on how to prepare their indicative prices, is now reviewing the prices. Initial analysis shows that in two regions, Essex and East Anglia, very large discounts may be available to licensees who have their own water supply but will use the existing water companies' networks to supply it to customers. Licensees can also buy water from existing water companies to sell it to customers. However, most indicative access prices for wholesale supplies show little discount from the retail price. Only eight existing water companies have published indicative wholesale prices that give a discount of more than one per cent; only two existing companies offer a discount of more than two per cent. One existing water company's price is greater than its retail price. Licensees will be able to apply to existing water companies for access to their water supply systems from 1 December 2005. Notes to Editors: 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. His duties include protecting the interests of customers, wherever appropriate, by promoting effective competition. 2. Links to the existing companies' indicative prices can be found on our website at www.ofwat.gov.uk and links to the access codes will be on the website shortly. 3. Two water companies, Albion Water Ltd (Albion Water) and Cholderton & District Water Company Ltd (Cholderton Water), are not required to publish indicative access prices. Albion Water does not have a supply system and the relevant sections of the Water Industry Act 1991 (as amended by the Water Act 2003) do not apply to it. Cholderton Water is a very small company that does not have any eligible premises in its water supply area. In those circumstances, we consider it reasonable and proportionate not to require them to publish indicative prices. MEDIA ENQUIRIES TO OFWAT PRESS OFFICE ON: 0121 625 1416/1496/1442 Out of hours enquiries to 07778 160806. Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk  | ||||||
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