South West Water has terminated Tor Water’s wholesale contract due to a series of outstanding undisputed payments.

Ofwat said it will now step in to use its powers under the Interim Supply Code to ensure affected customers have a new retailer as soon as possible. The water sector regulator is working with Market Operator MOSL to make sure all affected customers are allocated to a new retailer. Customer swill not experience any change to supply while this takes place.

Tor Water’s existing customers do not need to take any action – the provision of water supply or wastewater services will not be cut off or disrupted and customers’ premises will not be affected.

Tor Water customers in South West Water’s region will not be able to switch retailer until after the transfer process has been completed.

Once customers have been contacted by the new retailer they can then ask to be put onto the most appropriate deal or choose to shop around to find a different retailer.

Ofwat is advising customers who have paid any money in advance to Tor Water and want to know whether they will get the money back that they should speak directly to Tor Water.

In January Ofwat announced that it was proposing to issue the Devon-based water retailer with Final Enforcement Orders following months of failures to comply with requests for information and problems with invoice payments to wholesale water companies South West Water and Wessex Water.