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Letters to Managing Directors
MD 200 16 February 2005 LICENCE FEE 2005-06 In the Ofwat draft Forward Programme 2005-06 to 2007-08 published for consultation in January, we set out the following table which gave outline estimates of the licence fee components.
The licence fee invoices for Ofwat and WV will be issued in early April for a total of £14.2 million. This will recover the full year costs of Ofwat and WV after utilising £0.5 million underspend from previous years. The Water Act 2003 included the legislation to set up the Consumer Council for Water (CCW). Defra plans to establish the CCW on 1 October 2005, and is responsible for setting its level of budget and funding. In MD192 and MD199 Ofwat consulted on the changes to Condition N needed to recover the set up and running costs of the CCW. Defra will finalise the budget for the CCW over the next few months. Their initial estimate is a £5.6 million full year budget or £2.8 million half year. We will write to confirm when Defra has set the CCW budget. If the estimate of £2.8 million stands, then invoices totalling circa £1.2 million will be issued in late summer to recover the extra costs of the CCW in 2005-06. Philip Fletcher  |
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