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The shape of future competition in the water industry in England and Wales became clearer today as proposals on how the market would operate were unveiled. Ofwat, the Department for Environment, Food and Rural Affairs, and the Welsh Assembly Government, have jointly published a consultation document on the rules and regulations of the new competition framework, which is expected to come into force in autumn 2005. The draft guidance seeks views on key areas, including the eligibility of customers' premises, the licence application process, and the procedures for switching suppliers. A new water supply licensing regime is being created as a result of the Water Act 2003 that will allow business customers that use at least 50 million litres of water per year to choose from a range of alternative water suppliers as well as the existing water company. This will affect about 2,300 customers who collectively spend around £200 million each year on water. Tony Smith, director of competition and consumer affairs at Ofwat, said: "This is another important step in developing competition in the water industry. "The guidance we are developing in partnership with an industry advisory group will provide a clear understanding of the rules and regulations that will operate in the market without being too burdensome that it deters prospective suppliers." Ofwat expects to publish final guidance in the summer of 2005. 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. 2. The document, 'Eligibility, licensing, customer transfer and strategic supplies: Consultation paper' will be available on our website www.ofwat.gov.uk or from the library by calling 0121 625 1373. 3. Consultation responses should be sent to Christina Chadwick, or Bart Landen, Office of Water Services, Centre City Tower, 7 Hill Street, Birmingham, B5 4UA or by email to christina.chadwick@ofwat.gsi.gov.uk or bartosz.landen@Ofwat.gsi.gov.uk to be received no later than 5pm on Friday 28 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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