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Ofwat published today guidance on how existing water companies should allow new competitors to use their water supply systems. The 'Guidance on Access Codes' is a further step towards the beginning of the Water Supply Licensing regime, where new entrants to the water industry will be able to supply water to individual business customers using at least 50 million litres of water a year. The new competitors will have to apply to Ofwat for a licence to supply water. The guidance also sets out how existing water companies should calculate the price they can charge competitors for use of their water supply systems. This could affect some 2,200 customers who collectively spend around £210 million each year on water. Director of Water Services Philip Fletcher, said: "This is an important step towards extending opportunities for competition in the water industry. "Our guidance will form the basis on which appointed water companies write their access codes. These codes will set out the basis upon which each appointed water company will allow access to its supply system. The codes will be a critical part of making the market work effectively. "It is important that eligible customers can benefit from the new competition opportunities while those customers who cannot choose are not disadvantaged." Ofwat expects each appointed water company to publish its indicative access prices by 31 August and its access code by 15 September. The new competition regime will begin on 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. Customers' interests are also represented by WaterVoice. 2. The 'Guidance on access codes' is available on our website www.ofwat.gov.uk or from the library by calling 0121 625 1373. 3. The guidance has been drawn up with an industry advisory group comprising customers, potential new suppliers, appointed water companies, WaterVoice, Defra and the Drinking Water Inspectorate. 4. Water Supply Licensing competition results from the Water Act 2003. 5. Existing water companies are appointed under section 6 WIA91 to provide water services to customers in a defined geographical area of England and Wales. MEDIA ENQUIRIES TO OFWAT PRESS OFFICE ON: 0121 625 1416/1496/1442 Out of hours enquiries to pager: 08700 555 500 water 503/509. Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk  | ||||||
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