This site uses the UK Government AccessKeys system
|
|
What's new | Publications | Media centre | Price review | FAQs Update alerts | Consumer issues | Site map | Competition | Contact us |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||
Media centre
Plans to extend competition in the water industry in England and Wales have taken an important step forward today. Ofwat, the Department for Environment, Food and Rural Affairs, and the Welsh Assembly Government, have jointly published a consultation document on the framework that will enable new companies to compete in the supply of water to large businesses. The consultation seeks views on suggested changes to the appointment conditions of the existing water companies, and on proposals for conditions to be included in licences granted to new water suppliers. Business customers who are likely to use at least 50 million litres of water a year will be able to choose their water supplier because of the extension to competition as a result of the Water Act 2003. This will affect about 2,300 customers who collectively spend around £200 million each year on water. Prospective suppliers will be able to apply for a water supply licence in summer 2005, in advance of the new competition rules coming into operation in autumn 2005. Tony Smith, Ofwat's director of competition and consumer affairs, said: "Competition has the potential to benefit both the water industry and customers. It can spur water companies to greater efficiency and improved performance, and provide customers with lower prices and new and improved services. "In order to help competition develop, whilst protecting water quality, there need to be rules and procedures in place to govern how the existing water companies will provide access to their networks. Our approach is designed to provide regulatory certainty whilst ensuring that the new regulations do not become so burdensome that they deter prospective suppliers." 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. WaterVoice represents customers' interests. 2. The new competition regime will apply only to water supplies and not the provision of sewerage services. Where a customer switches from an existing water company (appointed under the Water Industry Act 1991) that also provides a sewerage service, that water company will continue to provide the sewerage service unless other arrangements are made. 3. Copies of the consultation paper, 'WATER ACT 2003, WATER SUPPLY LICENSING, Modification to water undertakers' existing conditions of appointment, Conditions of water supply licences', will be available from Ofwat's library (0121-625 1373) and on Ofwat's website, www.ofwat.gov.uk 4. Responses to the consultation paper should be sent in writing to Sukvinder Khangure, Competition Policy Team, Ofwat, Centre City Tower, 7 Hill Street, Birmingham, B5 4UA (fax: 0121-625 1379) or by e-mail to sukvinder.khangure@ofwat.gsi.gov.uk to be received no later than 5.00pm on 21 May 2004. 5. There are 24 existing water companies, which includes Albion Water Limited and Cholderton and District Water Company Limited. Media enquiries to Ofwat Press Office on: 0121 625 1416/1496/1442 Out of hours enquiries to pager: 08700 555 500 water 503/509.  | ||||||
© Crown copyright |
Disclaimer & Privacy Statement |