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Water Supply Licensing
WSL 14/05 3 November 2005 WATER SUPPLY LICENSING (WSL) GUIDANCE ON ACCESS CODES ENCLOSURE OF REPLACEMENT PAGES This letter is to provide details of the main amendments made to Ofwat's access code guidance. We have already notified you of some minor changes to Appendices 2 and 3 by email on 28 June 2005. Since then we have made other small changes, which are summarised in the attached annex. Please find enclosed replacement pages to update your copy of the guidance. The changes have been made to ensure consistency between the access code guidance and other documents, including the standard licence conditions, conditions of appointment and customer transfer protocol. As a consequence, water undertakers need to revise their access codes. We have asked each company to update its access code and make it available on its website by 25 November 2005. Please contact Suky Khangure on 0121 625 1410 or suky.khangure@ofwat.gsi.gov.uk if you have any queries about this letter. Yours sincerely Beryl Brown Head of Competition Policy ANNEX – Schedule of Changes to Access Code Guidance Page 3, section 1.1 (Background): Footnotes 4 and 5 on page 3 have been amended. Footnote 4 stated "A water undertaker's supply system is defined in section 17B(5) WIA91 for the purposes of the new licensing arrangements as comprising any water mains and other pipes which are used for conveying drinking (potable) water from the water undertaker's treatment works to its customers' premises, and any non-potable networks which are not connected to any potable system. Access to all other facilities (i.e. treatment works of a potable supply system and any upstream facility) is outside this licensing regime". It has been amended to, "A water undertaker's supply system is defined in section 17B(5) WIA91". Footnote 5 stated "The licence application process is part of the 'Guidance on The Water Supply Licence (Application) process and Regulations 2005'". It should say, "The licence application process is part of 'The Water Supply Licence (Application) Regulations 2005' and 'Applying for a Water Supply Licence Guidance'". Page 6, section 1.3 (Developing access terms): The last sentence on page 6 stated "Water undertakers have to publish their access codes by the end of August 2005 in an easily accessible form, and provide copies free of charge when requested". It has been amended to state, "Water undertakers have to publish their initial access codes by 15 September 2005 in an easily accessible form, and provide copies free of charge when requested. They should review them by the same date each year thereafter". Page 19, section 3.1.4 (Combined supply stage 4 – detailed contract negotiations): The section under the 'Contract stage' has been extended to include the unique premises reference number (PRN). The second paragraph stated "A transfer date should also be included in the contract, making due allowance for completion of actions under the CTP". It has been amended to state, "At this stage, a unique premises reference number should be generated by the water undertaker; and a transfer date should be agreed and included in the contract, making due allowance for completion of actions under the CTP." A third paragraph has been added to this section, which says, "The unique premises reference number is a new number that is assigned to an eligible premises for the purpose of identification when transferring within the customer transfer protocol. It consists of three letters identifying the water undertaker (for example, Anglian Water is ANH), followed by a unique five-digit number for each eligible premise". Page 24, section 3.2.2 (Preparation of individual contract schedules for wholesale supplies): The bullet point near the bottom of page 24 states "unique premises reference". It should say, "unique premises reference number". Page 25, section 3.3 (Information requirements for combined supply and wholesale application): The first paragraph has been extended to include a reference to unique premises reference number. A new sentence has been added after the sentence "Water undertakers must set out the specific information requirements at the initial contact stage and explain, if necessary, why it is needed". The new sentence is, "Water undertakers must generate a unique premises reference number during the contract negotiation stage". Page 32, section 4.5 (Customer contact – queries and complaints): The second paragraph has changed to reflect the final versions of Standard Licence Condition 5 and Condition R. The primary change was to include the term 'special consumer' and other minor changes have also been made. The paragraph stated "Under the standard conditions of Water Supply Licences, the licensee must inform the water undertaker of relevant details if customers with particular needs Standard Licence Condition 5 and Condition R, occupy or are likely to occupy any premises that the licensee supplies. This might include, for example, details of those living in eligible premises who require water for medical purposes. Similarly, under Condition R, the water undertaker must inform the licensee of relevant details if it is aware that a customer with particular needs occupies, or is likely to occupy any premises which the licensee is proposing to supply. Please see Condition R and standard licence Condition 5. However, the service of providing information to customers can itself be outsourced by the licensee, including outsourcing to the water undertaker". The paragraph has been amended to state, "Under Standard Licence Condition 5, the licensee must inform the water undertaker of relevant details if a special consumer occupies or is likely to occupy any premises that the licensee supplies. This might include, for example, details of those living in eligible premises who require water urgently for medical purposes. Similarly, under condition of appointment R, the water undertaker must inform the licensee of relevant details if it is aware that a special consumer occupies, or is likely to occupy any premises which the licensee is proposing to supply. However, the licensee can outsource the service of providing information to customers, including outsourcing to the water undertaker". Page 56, section 7 (Glossary): The definition of supply system at the top of page 56 stated "Any water mains and other pipes used for the purposes of conveying potable water from a water undertaker's treatment works to its customer's premises and any non-potable networks that are not connected to any potable system. This term is defined in section 17B(5) of the WIA91". It has been amended to say," Any water mains and other pipes used for the purposes of conveying water from a water undertaker's treatment works to its customer's premises and any water mains and other pipes used to convey non-domestic water from any source to premises that are not connected directly or indirectly to any water mains or pipes connected to those treatment works. This term is defined in section 17B(5) WIA91". Page 69, appendix 2 (Detailed methodology for calculating case-specific access prices + annexes 1 and 2): The first bullet point near the bottom of page 69 stated "The financing cost of capital is 7.3% post-tax". It has been amended to state, "The financing cost of capital is 7.3% pre-tax". Page 85, appendix 3 (Detailed methodology for calculating indicative access prices): The first bullet point near the bottom of page 85 stated "The financing cost of capital of 7.3% post tax". It has been amended to state, "The financing cost of capital is 7.3% pre-tax". We enclose replacement pages 3 / 4, 5 / 6, 19 / 20, 23 / 24, 25 / 26, 31 / 32, 55 / 56, 69 / 70 and 85 / 86.  |
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