WSL 05/06: Consultation on proposed modifications to access code guidance
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WSL 05/06

21 June 2006
Dear Colleague

CONSULTATION ON PROPOSED MODIFICATIONS TO ACCESS CODE GUIDANCE

I enclose a consultation on proposed modifications to our access code guidance. We have identified the need for these modifications through discussions at the advisory groups as well as through discussions at trilateral meetings with appointed water companies and licensees.

The proposed modifications are set out in annex A and relate to five key areas:

1. Application fees and other costs.
2. Wholesale water supply by primary water undertaker – application process.
3. Combined supply stage 2 – initial application.
4. Reasons for objection to the licensee's proposal.
5. Credit provisions/bond/guarantees.

For most of these issues we are simply proposing to clarify the existing policy position. Following discussions at our Monitoring Advisory Group yesterday, we are considering a further option on how appointed water undertakers should recover their water supply licensing related costs, including customer-specific application fees. We will be developing this proposal in conjunction with key stakeholders over the next few weeks. We will then write to you to ask you for your views on this alternative option. There may be further issues that arise as discussions progress and we will notify/consult you as appropriate.

In annex B we have set out how we propose these modifications should be reflected in the current version of the access code guidance. All modifications to the current guidance are shown as track changes for easy reference.

We would like to make these changes, subject to comments received, as quickly as possible. Please send your comments on the consultation by Wednesday 19 July 2006 to Hayley Purcell at Ofwat, Centre City Tower, 7 Hill Street, Birmingham, B5 4UA. You may also e-mail your responses to hayley.purcell@ofwat.gsi.gov.uk.

Unless otherwise requested, we will put all responses in the Ofwat library and make them available to the public. Early responses would be appreciated.

Yours sincerely


Keith Mason
Director of Regulatory Finance and Competition

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