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Ofwat has modified the licences of two water companies to safeguard the interests of customers. Changes to Southern Water's operating licence will require it to provide extra information on the water services that it supplies to the Hampshire area and the Isle of Wight. This will include the condition of the company's assets, its capital and operating costs and the reliability of its water supplies. The extra data will help Ofwat to continue to be able to make robust comparisons of companies' costs and performance when its sets water price limits. The modifications follow last year's Competition Commission inquiry into the bid by Vivendi (now Veolia) for the company. Changes have also been made to the licence of Dee Valley Water, in North Wales, following the company's financial restructuring. They include further ring-fencing of the regulated water business from other activities carried out within the Dee Valley Group. 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. Copies of the licence modifications will appear on Ofwat's website, www.ofwat.gov.uk The modifications are held as part of the Director's register and are available for inspection at the Ofwat library. Paper copies of the modifications are available for sale at 10p per page (minimum charge £1.00) from 0121 625 1373. 3. Last November Competition Minister Melanie Johnson accepted the Competition Commission's conclusion that Vivendi's proposed take-over of Southern Water would be against the public interest because Vivendi already owned a number of other companies. She agreed with the recommendation that it should only go ahead if a satisfactory remedy could be found. The Competition Minister accepted Vivendi's decision to divest its stake in South Staffordshire Water and acquire a minority stake in Southern Water provided it supplied additional data for the Hampshire area. The majority stake in Southern Water is owned by the Royal Bank of Scotland. 4. In August 2002 Dee Valley Group completed a capital restructuring of Dee Valley Water that raised the water company's borrowings to £35 million, around 80% of its regulatory capital value. Dee Valley Group believes this increased level of long-term debt will allow Dee Valley Water to reduce its cost of finance. 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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