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WSL Publications
WSL 03/08 27 August 2008 Dear Colleague Consultation on proposed modifications to the pricing section of the access codes guidance In the attached consultation document, we explain our proposed modifications to the sections of the access codes guidance that cover the calculation of access prices. One of the changes we propose is intended to increase the potential for competition in the water sector to develop. Because of this change, the indicative access prices that water companies publish should indicate more accurately the price that any licensee can expect for any customer. In addition, we have identified a need to clarify our guidance in two areas regarding the calculation of case-specific access prices. The consultation document also sets out proposed changes to the retail cost information that we require from water companies to enable us to assess their indicative access prices and asks for views about the data that may be needed to administer a future regime. The attached version of the pricing chapter of the access codes guidance shows in highlighted text the proposed changes to the wording of this part of the guidance. We are not proposing to change any other chapters of the access code guidance, other than to make amendments to the contents page and page numbering that may be necessary because of the alterations to the pricing chapter. These proposals are likely to affect the way both case-specific and indicative access prices are calculated. We would therefore like to make these changes, subject to comments received, as quickly as possible. Members of Ofwat's Monitoring Advisory Group and Operations Advisory Group have already had the opportunity to discuss these proposals before this consultation was published. We consider that a four-week consultation period is sufficient to allow any other interested parties to comment. We invite your comments by the end of 24 September 2008. Please respond in writing to Hayley Purcell at Ofwat. Responses may be e-mailed to hayley.purcell@ofwat.gsi.gov.uk. Unless otherwise requested, all responses will be placed in the Ofwat library and made available to the public. Any enquiries about this letter should be referred initially to Matt Halden by telephone on 0121 625 1376 or by e-mail to matthew.halden@ofwat.gsi.gov.uk. Yours sincerely Phillip Dixon Head of Competition Policy  |
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