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Letters to Managing Directors
MD 226 15 August 2007 Dear Managing Director Water supply licensing (WSL) – revised condition of appointment R I enclose your revised condition of appointment R, which comes into effect on 1 September 2007. This condition has been modified following our consultation on 2 May 2007 (WSL 02/07). We received 18 responses to the consultation. A summary of the responses is available on pages 19 to 21 of our 'Changes to the water supply licensing guidance consultation responses document' (July 2007). Although most respondents agreed with our proposals, several appointed water companies questioned the need for the modifications and some suggested additional or alternative wording. As explained in WSL 02/07 and the responses document, the modifications are to strengthen obligations regarding confidentiality of information and require appointed water companies to produce compliance codes which comply with guidance issued by us. We have considered all suggestions for alternative wording; however, none of the suggestions achieved the aim of our proposal. But we have added some additional wording to make clear what the scope of our compliance guidance will be. We will be working with our Operations Advisory Group to develop the compliance guidance. For the avoidance of doubt, appointed water companies will not be required to have a compliance code for the purposes of new paragraph 7(4) of Condition R until we have issued our compliance guidance. This does not of course affect the requirement for appointed water companies to comply with the obligations of confidentiality in their conditions of appointment. We would expect appointed water companies to have appropriate compliance procedures in place to ensure that they comply with the confidentiality obligations. A written set of procedures would help to demonstrate compliance. The modifications to condition of appointment R have been made using the powers under paragraph 4 of Schedule 4 to the Water Act 2003. A copy of these modifications will be held on Ofwat's Register. I would be grateful if you could acknowledge receipt of your revised condition of appointment R to Hayley Purcell at hayley.purcell@ofwat.gsi.gov.uk. Enquiries on this letter should be referred initially to Harpreet Atwal by telephone on 0121 625 1320 or by e-mail to harpreet.atwal@ofwat.gsi.gov.uk. Yours sincerely Keith Mason  |
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