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Ofwat today launched a consultation into any regulatory issues arising from the new ownership of Thames Water. On 1 December 2006 Kemble Water Limited, a consortium led by Macquarie's European Infrastructure Funds, completed its acquisition of Thames Water Holdings Plc, the UK parent company of Thames Water Utilities Limited (Thames Water). Thames Water is an appointed water and sewerage company regulated by Ofwat. On a change of ownership, Ofwat, in the interests of water consumers, looks to ensure that the new owner of a water company is fit and proper to provide such an essential service. In accordance with this, it is consulting on the regulatory issues arising from the acquisition. Ofwat is proposing a number of amendments to Thames Water's licence to ensure that it has sufficient financial resources and is appropriately ringfenced from the rest of Kemble Water Limited. Ofwat is inviting views on: · The capacity of Kemble Water Holdings Limited (the UK holding company of Kemble Water Limited) and its consortium of investors to own a regulated company.;
Both Thames Water and its new owners are fully aware that the outputs and price limits set in 2004 and the undertaking Ofwat received from Thames Water in July 2006 remain in place and will require delivery under the new ownership. Notes to Editors: 1. Thames Water serves around 13 million customers across London and the south east of England, the largest of the ten water and sewerage companies in England and Wales. 2. The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will allow companies to carry out their functions properly, and finance them. Its duties include protecting the interests of consumers, wherever appropriate by promoting effective competition. 3. Ofwat has no power to block the acquisition of Thames Water Holdings Plc by Kemble Water Limited. But it can propose licence modifications designed to address any regulatory issues arising from the acquisition in order to protect the interests of consumers. 4. Copies of the consultation document will be available on the Ofwat website on www.ofwat.gov.uk or from the Ofwat Library on 0121-625 1373. 5. Responses should be sent to Keith Mason, Director of Regulatory Finance and Competition, Ofwat, Centre City Tower, Hill Street, Birmingham B5 4UA (fax: 0121-625 3609)) or by email to keith.mason@ofwat.gsi.gov.uk to arrive no later than 5pm on 5 March 2007. 6. Ofwat will place all responses in the Ofwat Library unless they are clearly marked confidential. 7. Thames Water's price limits will remain unchanged from those determined by Ofwat at the 2004 periodic review. Ofwat will monitor the performance of Thames Water to ensure the change of ownership has no adverse impact on the prices it charges its customers or the quality of service they receive. 8. Ofwat has secured a legally binding undertaking from Thames Water to replace additional leaking water mains at the expense of its shareholders. The company will spend an extra £150 million to achieve its leakage targets. 9. Media enquiries to Ofwat Press Office on: 0121 625 1416/1496/1442/1322. Out-of-hours enquiries on 0121-625 1300.  | ||||||
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