List of appointees and their owners

Acquisition (new entrant into the market)

Ofwat as the economic regulator itself has no ability to block acquisitions of companies. But in the interests of water consumers it looks to ensure that any owner of a company is 'fit and proper' to provide such an essential service. Ofwat regulates through the provisions of each company's licence and can impose suitable amendments if necessary, subject to appeal by the company to the Competition Commission in the event of disagreement. We publish a consultation paper consulting on any regulatory issues arising from the completed acquisition. If necessary we publish a position note detailing issues arising from the consultation and next steps. If licence amendments are required, then they are published via a statutory notice under S13 of the Water Industry Act 1991. Ultimately, the amended licence is made effective once agreed by the company and signed by Ofwat’s Chief Executive.

Mergers (existing companies coming together)

The WIA91 put in place a special merger regime for mergers between companies. Under section 32 of Water Industry Act 1991 (subsequently amended by the Enterprise Act 2002 (EA02) and Water Act 2003), the Office of Fair Trading (OFT) must refer to the Competition Commission a merger of two or more companies in England and Wales where the turnover of each is £10 million or more.

Once the OFT refer the merger to the Competition Commission we, as the sector regulator, provide evidence to the Competition Commission. Dependent upon the outcome of the Competition Commission's judgement, we may make amendments to the water company’s licence through Section 13 of the Water Industry Act 1991. Ultimately, the amended licence is made effective once agreed by the company and signed by Ofwat’s Chief Executive.