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Ofwat today published proposals to protect customers of Northumbrian Water following its consultation in June on the company's change of ownership. Ofwat plans to make changes to Northumbrian's licence that will bring it into line with other water companies recently involved in mergers or takeovers. This will ensure that customers are protected from any undue risks. Northumbrian's credit rating was downgraded following its takeover by Northumbrian Water Group (formerly Aquavit plc) in May 2003. Debt investors have expressed their concern that the rating may not be sustainable in the long term as the company needs ready access to the capital markets. Northumbrian's management is reviewing options that could improve the credit rating. Ofwat will monitor the steps taken by the company and revisit the need for further regulatory action in June 2004. Philip Fletcher, Director General of Water Services, said: "I regard this as a matter of priority for the company. I have informed Northumbrian Water that if, by June 2004, it is not able to demonstrate that all reasonable steps have been taken, then I will need to consider whether further licence modifications might be appropriate." Northumbrian Water supplies water and sewerage services to more than one million customers in the North East of England, and water services to a further 730,000 customers in Essex and Suffolk. Note 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. Customers' interests are represented by WaterVoice. 2. Ofwat's position paper, The completed acquisition of Northumbrian Water Ltd: A position paper by Ofwat, will be available from the Ofwat website on www.ofwat.gov.uk or from the Ofwat library on 0121 625 1373. 3. Ofwat consulted on possible action following Northumbrian's change of ownership in June. Copies of the consultation document, The Completed Acquisition of Northumbrian Water Limited: A consultation paper by Ofwat, is available from the Ofwat website on www.ofwat.gov.uk or from the Ofwat library on 0121 625 1373. 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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