MD 206: Water Supply Licensing (WSL) - New appointment Conditions R and S

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Ofwat home > Publications > Letters to Managing Directors

MD 206

TO ALL MANAGING DIRECTORS
OF APPOINTED WATER AND SEWERAGE COMPANIES
AND WATER ONLY COMPANIES

12 September 2005

WATER SUPPLY LICENSING (WSL) - NEW APPOINTMENT CONDITIONS R AND S

I enclose your two new conditions of appointment, conditions R and S, which come into effect on 15 September 2005. These conditions relate directly to the new WSL regime and have been made following our consultations on 21 December 2004 (WSL 5/04) and 30 June 2005 (MD 205). A summary of consultation respondents' views on conditions R and S and our response to these is attached for information.

Conditions R and S have been reviewed and where appropriate modified for Albion Water Ltd and Cholderton & District Water Company Ltd commensurate with their size and circumstances. This is explained in detail in the attached responses paper.

Several incumbent companies responding to the 30 June 2005 consultation questioned whether our proposals for condition R went wider than my powers under the Water Act 2003 would allow. I have carefully considered these arguments. I conclude that our proposals are necessary for the regime to operate effectively, will increase the clarity and certainty of that regime and are properly within my powers under the Act. I am therefore proceeding with the proposals.

These modifications have been made using the powers under paragraph 4 of Schedule 4 to the Water Act 2003, pursuant to which I may modify your conditions of appointment where I consider it necessary or expedient to do so in consequence of the amendments to the Water Industry Act 1991 made by Schedules 4 and 8 to the Water Act 2003 (ie the introduction of the WSL regime). A copy of these modifications will be held in the Director's Register.

I would be grateful if you could acknowledge receipt. Enquiries on this letter should be referred initially to Suky Khangure by telephone on (0121) 625 1410 or by email to sukvinder.khangure@ofwat.gsi.gov.uk.

Philip Fletcher

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