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Ofwat is also seeking views on its proposal to change South East Water's licence to ensure that consumers of both companies continue to be protected. In its decision the Competition Commission accepted that a merger would reduce Ofwat's ability to make comparisons between individual companies – a vital part of its work in determining the size of customer bills. But it concluded that the merger should proceed on certain conditions. The first is that the merged company must reduce its customers' bills by a total of £4 million for 2008-09 – the equivalent of nearly £5 on average per customer. The second is for customers to benefit from additional efficiencies arising from the merger. Price limits at the next price review in 2009 will reflect the benefit of a £3.1 million reduction to the merged company's operating costs. Ofwat will ensure these conditions are implemented, and that South East Water maintains, and where necessary improves, its service standards to all its customers. Notes to Editors: 1. The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will protect the interests of consumers, promote value and safeguard future water and sewerage services by allowing efficient companies to carry out their functions properly, and finance them. 2. The consultation notice is available on the Ofwat website, www.ofwat.gov.uk, and from the Ofwat Library on 0121 625 1373. 3. The Competition Commission will shortly publish a consultation notice on its proposal to accept the undertakings from both water companies and their owners to ensure the remedies are implemented. This will be available on the Competition Commission website, www.competition-commission.org.uk 4. The consultation on Ofwat's proposals ends on 30 November 2007. 5. Media enquiries to Ofwat Press Office on: 0121 625 1442/1416.  | ||||||
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