Ofwat has launched a new consultation on changes to Instruments of Appointment and Water Supply Licences for the opening of the non-household retail market in 2017.
The consultation sets out the changes to the text of the following.
- The Instrument of Appointment (IoA) of appointed monopoly water only and water and sewerage companies in England and Wales and, where applicable, companies that have successfully applied for an appointment to replace the existing appointed water and or sewerage company at a particular site.
- The water supply licence of existing companies licensed to compete to supply large users with water.
The purpose of the changes is to:
- remove the ban on licensed water suppliers associated with appointees from trading in the appointee’s area of appointment; and
- introduce a new ‘readiness’ condition requiring undertakers and licensed water suppliers to take the necessary steps to support the opening of the new retail market.
The document follows on from the regulator’s recent results document ‘Consultation on licensing: results and decisions’ which was published on 9 December 2015 which identified five main deliverables required for the licensing framework for non-household retail market opening and explained the next steps that Ofwat intended to follow. The new consultation concerns the next steps on IoA and WSL - the changes will apply to all undertakers including, where applicable, new appointees.
Deadline for responses is 5th February 2016 - click here to download the consultation paper.
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