WSL 01/05: Water Supply Licensing (WSL) implementation
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WSL 01/05

7 April 2005

Dear Colleague

WATER SUPPLY LICENSING (WSL) IMPLEMENTATION

On 29 March 2005, the fourth commencement order relating to the Water Act 2003 was made. This contains some important provisions that move us closer to WSL competition.

Since 1 April 2005, we have had a new competition duty that requires us to protect the interests of consumers, wherever appropriate by promoting effective competition between persons engaged in or in commercial activities connected with the provision of water and sewerage services. The introduction of this new duty corresponds with the work that we are doing to introduce the WSL arrangements later this year.

The commencement order also makes provision for companies to apply to us for a water supply licence from 1 August 2005. The licence will enable companies to compete against the existing statutory water companies to supply water to large business customers who use at least 50 million litres of water per year. We expect the arrangements that will allow companies to compete to be in place from the autumn of this year. Exact timings will be confirmed once we have fully considered the consultation responses on our proposals for licence and appointment conditions and exception regulations that were received at the end of March 2005.

The commencement order which introduces these important provisions can be found at http://www.hmso.gov.uk/si/si2005/20050968.htm.

For your information, I am placing a copy of this letter on our website.

Yours sincerely



Alison Dedicoat
WSL Project Manager


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