In December 2005, the competition provisions of Water Act 2003 came into force. Water companies have been working hard with Ofwat and prospective new water suppliers to give effect to these.
However, negotiations have proved difficult, in part due to Ofwat declining to facilitate the common drafting of standard access arrangements, this in contrast to other regulators.
Ofwat has now issued a letter requiring water companies not to delay the introduction of competition. Water companies will of course continue to try to conclude agreements with new suppliers as quickly as possible.
Nevertheless Water UK and water companies will continue to try and persuade Ofwat that concluding agreements would be greatly facilitated by the sanctioning of standard access arrangements.
Contact: Richard Venters