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Arrangements for new companies to use the water pipes of existing water companies to supply their customers were outlined today with the launch of a consultation by Ofwat. A new water supply licensing regime in England and Wales is being created as a result of the Water Act 2003 that will allow new companies to compete in the water industry. It means that business customers that use at least 50 million litres of water per year will be able to choose from a range of new water suppliers in their area, as well as the existing water company. This will affect about 2,300 customers who collectively spend around £210 million each year on water. Ofwat is inviting views on guidance it is proposing for the access codes that existing water companies will put in place to control the use of their pipes. Tony Smith, director of competition and consumer affairs at Ofwat, said: "This is an important step towards extending opportunities for competition in the water industry. "Our guidance will form the basis on which water suppliers write their access codes. The codes will be a critical part of making the market work effectively." The consultation runs until January 2005 and the final guidance will be published in early 2005. Ofwat expects access codes to be published by existing water companies in summer 2005 and the new competition regime to begin in autumn 2005. Ofwat, along with the Department for Environment, Food and Rural Affairs and the Welsh Assembly Government, plan to run consultations on guidance for other aspects of the new regime in the next two months. 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. Customers' interests are represented by WaterVoice. 2. The consultation document, 'Access code guidance' is available on our website www.ofwat.gov.uk or from the library by calling 0121 625 1373. 3. Consultation responses should be sent to Sukvinder Khangure, Office of Water Services, Centre City Tower, 7 Hill Street, Birmingham, B5 4UA or by email to sukvinder.khangure@ofwat.gsi.gov.uk by close of business on Friday 14 January 2005. 4. The guidance has been drawn up with an industry advisory group comprising existing water companies; potential new suppliers; customers and WaterVoice; Defra and the Drinking Water Inspectorate. 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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