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Ofwat today announced that following Aquavitae (UK) Limited going into administration it has issued a notice revoking its water supply licence. This will come into effect in seven days time unless Aquavitae provides Ofwat with compelling reasons why the licence should not be revoked. Ofwat is revoking Aquavitae's licence because the company is or is likely to be unable to pay its debts. It is important that a water supply licensee should have the financial resources to carry out the activities authorised under its licence. Although Aquavitae did not have any water supply licence customers, and all the company's activities were outside the regulated water supply licensing (WSL) regime, Ofwat is acting swiftly to protect potential new customers. Competition under the WSL regime is limited by legislation, is confined to a small number of business customers and has not developed successfully. Ofwat is clear that a change is needed. It is proposing that more of the water market is opened progressively and the framework for competition improved. Ofwat has published a consultation on recommendations to Government for reform of the water and sewerage competition framework, which is also intended to inform the independent competition review commissioned by the Government and led by Professor Martin Cave. Notes to Editors: 1.The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will protect the interests of consumers, promote value and safeguard future water and sewerage services by allowing efficient companies to carry out their functions properly, and finance them. 2.The consultation paper 'Ofwat's review of competition in the water and sewerage industries: Part II' is available on the Ofwat website, www.ofwat.gov.uk 3.Media enquiries to Ofwat Press Office on: 0121 625 1442/1496/1416.  | ||||||
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