Ofwat consultation on water supply licensing guidance
Ofwat consultation (71 pages, PDF) on proposed changes to its access codes guidance, relating to both price and non-price elements of the guidance and related licence conditions.
The proposals on the price guidance include the production of a more detailed breakdown of the avoidable cost estimates to be deducted from retail prices to calculate access prices, and of a more detailed schedule of additional costs of dealing with licensed suppliers (with discounts for those supplying several sites).
The following topics are not mentioned in the consultation document:
- Competition Appeal Tribunal criticisms of the current guidance;
- Competition Appeal Tribunal decision on the legality of Welsh Water's claimed use of the principles in that guidance;
- any aspect of the Albion Water / Welsh Water (Shotton) case;
- any obligations that water undertakers might have under Article 82 or the Competition Act 1998;
- the concept of a price squeeze or margin squeeze.
Responses by Friday 1 June 2007.
Update, 3 May 2007: Ofwat press notice on this consultation and the parallel one on secondary supplies. The notice is also silent on competition law and water access case law.
For further information or advice please contact Franck Latrémolière.
