PN 22/04: Consultation launched on rival bid to supply housing development

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PN 22/04	17 June 2004
Consultation launched on rival bid to supply Housing development

Proposals to allow a housing developer to choose a water supplier were published today by Ofwat for consultation.

Under the plan, the Fairfield Park and Lower Wilbury Farm site in Arlesey, Bedfordshire, would be supplied by Three Valleys Water instead of the existing statutory water company for that area, Anglian Water.

The proposal, known as an inset appointment, will need to be approved by the Director General of Water Services.

If it does receive the go-ahead it will be another instance where a rival water company has successfully competed with another water company to supply a new development.

Three Valleys Water has confirmed that its existing customers will not pay for or subsidise this proposal.

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. WaterVoice Thames is provisionally considered to be the appropriate customer service committee to represent customers on the Fairfield/Lower Wilbury Farm site.
3. Any representation about, or objections to, the proposals should be sent in writing to Beryl Brown, Head of Competition Policy, Office of Water Services, Centre City Tower, 7 Hill Street, Birmingham, B5 4UA (fax 0121 625 1379) so as to be received no later than 5pm Thursday 15 July 2004.
4. An inset application must meet one of three criteria:

The business customer is likely to use at least 100 megalitres of water per year in England (about 22 million gallons) and 250 megalitres in Wales;
It is a site not currently being served by a statutory undertaker; or
The existing licensed water supplier agrees to the inset application.

5. When the new water supply licensing regime under the Water Act 2003 comes into force in autumn 2005 the criterion for qualifying customer use will fall to 50 megalitres of water per year.
6. There have been, to date, nine inset appointments.

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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