SLR 02/04: Guidance for new self-lay and requisitioning provisions
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13 May 2004


SLR 02/04


Dear Colleague

GUIDANCE FOR NEW SELF-LAY AND REQUISITIONING PROVISIONS

The self-lay and requisitioning provisions of the Water Act 2003, which amend the Water Industry Act 1991, come into effect on May 28 2004. The new provisions formalise arrangements for self-lay agreements and give us powers to handle disputes about self-lay and requisitioning agreements.

In December 2003 we published our consultation papers about implementing the new regime: 'Financial arrangements for self-lay and requisitioning agreements' (the financial consultation); and 'Process for Handling Disputes and Appeals: Requisitioning of water mains and public sewers and adoption of self-laid mains' (the disputes consultation). These consultations outlined how we expect companies to calculate payments and charges for installing new infrastructure and our approach to handling disputes and appeals.

We invited stakeholders to respond with their views by March, which we have taken into account in producing the financial guidance and the disputes guidance. These are enclosed. We have also summarised the responses received and explained how we took account of them when preparing the guidance documents. We have placed all responses, unless marked confidential, in the Ofwat library.

We propose to revise the disputes guidance in the light of our experience of handling disputes. We propose to revise the financial guidance in 2006.

We look forward to working with the industry to implement the new regime.

Yours sincerely



Beryl Brown
Competition Policy

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