This section sets out the information you as the applicant are required to submit in support of your application for a water supply licence.

An application for a licence must be made in writing to us, dated and signed on behalf of the applicant company. It must contain the following:

• general particulars
• information demonstrating financial stability and managerial competency
• information demonstrating understanding of the required technical competencies

The application will be assessed against the assessment criteria

General particulars

You must provide the following, unless you are applying for a variation to a licence and the information has not changed since the original application:

• the company’s registered name, number and office
• details of the corporate structure of the group of which the company is a part including a copy of the organisation structure
• particulars of any relationships the company has with existing appointed water companies or licensees
• the name of the person dealing with the application, his or her position, telephone, fax numbers and e-mail address
• whether the application is for a retail licence, a combined licence or a variation of a licence
• the date when you wish the licence or variation to take effect
• the names and addresses of the company’s directors and Managing Director or Chief Executive Officer
• details of any of those persons’ unspent criminal convictions
• a declaration to the effect that all directors of the company are fit and proper persons for the purposes of the Companies Act 1985
• details of any unspent corporate criminal convictions against the company and any parent, holding or associate company
• a declaration as to whether any director or manager of the company has previously been a director or manager of a company that has had a water supply licence revoked
• an electronic version of the draft notice of application

Financial stability and managerial competency

Applicant companies need to demonstrate that they have the financial and managerial capability to be granted a licence.

You should provide the following items, unless the application is for a variation to a licence and the information has not changed since the original application:

• the preceding three years’ audited statutory accounts and annual reports, if available
• a business plan and accompanying verification statements

We will not usually require applicants for a variation from a combined to a retail licence to submit a business plan, but may do so if we believe that this will help the applicant to demonstrate that it is fully competent to hold a retail licence. This might be the case, for example, if a combined licensee that was active in a small local area decided to stop being a combined licensee in order to become a much larger retail only licensee

Business plan

The business plan should include information on the company’s strategy, finances and management, including CVs for key personnel, and should include the assumptions underlying projections in the plan.

All financial statements provided to support the business plan should be set out on a quarterly basis.

The business plan must include the following.

• The estimated cost of acquiring product and public liability insurance at an appropriate level, quoted by an appropriate insurance company (this is explained further in our access code guidance).
• The estimated cost of necessary security and emergency arrangements.
• Statements from the company’s financial backers and from a sponsor who can assist in demonstrating the company's financial and managerial capability. These statements should be provided on headed paper and signed by the relevant parties.
• For applicants for a variation from a combined to a retail licence, details of any changes in key personnel since the original application, and CVs for those key personnel who have joined the company, its advisors or subcontractors since then.
• Full details of the systems and procedures that the company has in place to:
  • comply with its duties under WIA91
  • comply with the standard conditions of water supply licences
  • comply with the guidance issued by us under WIA91
  • communicate emergencies and details of vulnerable consumers to the relevant appointed water company
  • comply with relevant appointed water company’s existing operational standards; together with details of how those systems and procedures will be tested
• A declaration by a director (on behalf of the applicant company) that the directors are aware of the responsibilities of licensees under WIA91, including responsibilities in relation to security issues under section 208 WIA91;
• A declaration by a director (on behalf of the applicant company) that the company, if granted a licence, will work positively with the Consumer Council for Water.
• An undertaking from any parent company that it will not strip the applicant company of any assets required for designated strategic supplies.

Assessment

Our assessment of whether the applicant company has sufficient financial and managerial resources will be based largely on the assessment of the company’s sponsor and on the statement from its financial backers.

We have not set prescriptive requirements for our assessment of whether the applicant has adequate knowledge and understanding of the duties of licencees. The information we need in order to decide whether an applicant can demonstrate adequate knowledge will vary from case to case. We will use a combination of the following.

• Information on the qualifications and previous experience of the company’s directors, Managing Director or Chief Executive Officer and other key personnel or sub-contractors who will be involved in the licensed activity.
• Information on the systems and procedures that the company has put in place, as set out above.
• The overall quality of the submission.

If necessary, we will invite you to a meeting to give you the opportunity to demonstrate knowledge of the responsibilities of water supply licensees.

Technical competencies

Prospective combined licensees

Following its first stage assessment, the Drinking Water Inspectorate (DWI) will advise us whether or not the applicant company is aware of its responsibilities when introducing water into the public supply system. In addition companies should be aware of the likely impact of their activities on the hydraulics of the system and resulting water quality issues. This may be subject to a satisfactory interview.

You will not need to provide rigorous proof at the application stage that you can comply with these requirements, as this will be covered by the DWI’s second stage assessment.

Relevant documents of which you should be aware include the following:

• WIA91 – especially sections 18, 19, 67-70, 86, 202 and 208
• Water Supply (Water Quality) Regulations
• Water Supply (Water Fittings) Regulations 1999
• all relevant guidance issued by DWI

Prospective retail licensees

The applicant company should be able to demonstrate that it has adequate overall understanding of water supply and water quality issues. For some of these requirements, for example knowledge of the relevant security and emergency measures required, you may be able to fulfil this requirement by showing that you have access to advisors with adequate knowledge of these issues.

Relevant documents of which you should be aware include the following:

• WIA91 – especially sections 18, 19, 67-70, 86, 202 and 208;
• Water Supply (Water Quality) Regulations;
• Water Supply (Water Fittings) Regulations 1999;
• all relevant guidance issued by DWI.

The DWI’s approval of the application may be subject to a satisfactory interview.

Variation from a combined licence to a retail licence

Combined licensees applying for a variation that will give only the retail authorisation have already demonstrated to us that they are capable of carrying out retail activities. They will need to provide the following additional information:

• information concerning arrangements ensuring continuity of supply to its customers
• evidence of discussions with relevant persons in appointed water companies on how to address strategic supply implications, if applicable.