MD 176

TO ALL MANAGING DIRECTORS OF
WATER AND SEWERAGE COMPANIES
AND WATER ONLY COMPANIES                                                                                  

COMPETITION IN PROVIDING NEW WATER MAINS AND SERVICE PIPES

I enclose copies of two reports we have published today:

1) Competition in providing new water mains and service pipes - responses to the consultation.

This summarises the views we received in response to our consultation paper 'Competition in the provision of new water mains and service pipes', published in August 2001, and says whether or not we have changed our view as a result.

2) Competition in providing new water mains and service pipes - guidance to water companies version 1.0.

This revises the draft guidance as a result of responses to the consultation and sets out the principles that water companies should use as a framework for their own procedures on self-lay. You should note that the numbers of the final principles differ from those in the first report. This is because we have modified the draft principles in response to respondents' views.

• Water companies should allow developers to organise and undertake most of the works involved in   installing new water mains and service pipes.
• Water companies should have comprehensive self-lay policies that are freely available and meet the principles in our guidance.
• We are establishing a self-lay advisory group, by June 2002, to encourage companies and SLOs to work together. The group will have a key role in facilitating progress in the self-lay market. Its priorities will be to consider how best to establish national levels of service and a national scheme for approving SLOs.

Please submit two copies of your policy to Elaine Chatham, Competition Case Manager, by 26 July 2002. We will provide feedback as necessary.

Yours sincerely

PHILIP FLETCHER

Encs