Ofwat has ordered a water retailer which has failed to pay outstanding invoices worth over £5000 to a water wholesaler not to provide water and sewerage services to any new customers.
Announcing its decision, the water regulator said that water retailer Tor Water Ltd. has repeatedly failed to pay undisputed amounts of more than five thousand pounds (excluding VAT) to the wholesaler.
Ofwat said that in accordance with its powers and duties and in the interest of customer protection, it was appropriate to take steps to prevent the licensee from providing the services to any new customers while it continues to fail to pay amounts due under the Wholesale Contract.
The Direction, which took effect on 30 May 2019, will remain in place until such time as Ofwat directs otherwise.
The regulator has told Tor Water Ltd it must pay any outstanding, and undisputed, invoices or statements by no later than 28 June 2019, together with paying any future undisputed invoices and statements in accordance with the Business Terms of the Wholesale Retail Code.
Tor was also ordered to include a notification in a prominent position on the home page of its website, in terms approved by Ofwat, stating that it is not currently providing water retail services and/or sewerage retail services to eligible premises and/or non-household customers that it is not currently providing these services to.
Ofwat also told the retailer that “ for the avoidance of doubt…it must be clear in any communications as to the reasons why it is not currently providing the services” to potential new customers.
Whether this extended to the website announcement is unclear - Although now prominently displayed on Tor Water’s homepage there is no reference to the reasons behind the statement.
The announcement simply states:
“Please note that TOR Water is not currently taking on new customers or additional premises for existing customers. In the meantime if you need us or would like more information then please don’t hesitate to get in touch. Business as usual for our existing customers.”
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