A new appointment or variation provides the opportunity for a limited company to provide water and sewerage services or water only services for a specific area in place of the former provider. It is not possible to take over a provider’s whole area through a new appointment or variation. The replacement appointed water company will have the same duties and responsibilities as the previous statutory provider for the specified area.  There are three circumstances in which a new appointment or variation can be granted.

1. The large user criterion, for an area in which each of the premises if one or more customers is supplied (or is likely to be supplied) with at least 50 megalitres (Ml) of water in England or 250 Ml of water in Wales in any 12-month period. The same criterion applies to new appointments and variations for sewerage services (for the amount of water supplied, not effluent discharged)
2. The unserved criterion, for an area in which none of the premises is served by the appointed company. This includes an area that may be currently supplied by an unregulated or ‘private’ supplier with its own source of water. This criterion must be met separately if both water and sewerage services are included in the application.
3. The consent criterion, for when an existing appointed company consents to transfer an area to a new appointee. 

The applicant must satisfy us fully that it can finance and carry out the functions of a statutory water company. Only when we are completely satisfied that an applicant is financially, operationally and technically viable will we confirm that an application is complete. This may take some time if initial submissions are unsatisfactory. After considering a complete application, we decide whether to recommend to the sub-committee that it makes the appointment. If the sub-committee agrees with our recommendation, a statutory public consultation period of at least 28 days will follow.  A successful new appointee can serve its new customer(s) either with its own resources or by requesting use of the appointed water company’s assets.  Our publication provides detailed information on the application process.  Our letter sets out our current policy on new appointments and variations.  Where appropriate, this replaces our February 1999 guidance and should be used as a guide until it is superseded by a further statement. We publish a register of all the new appointments and variations that have been made. 

Proposed new appointments and variations