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WSL 20/05
22 December 2005
Dear Colleague
CONSULTATION ON PROPOSED MODIFICATIONS TO ACCESS CODE GUIDANCE
In this letter we set out proposed modifications to appendices 2 and 3 of our access code guidance which, as part of section 6 of the guidance, cover the calculation of access prices.
We have identified the need for these modifications through discussions at our access pricing workshop in July 2005 and in our Technical Advisory Group, as a consequence of our recently published guidance on strategic supplies, and through our discussions with water undertakers about their published indicative access prices.
The proposed changes (including some worked examples) are set out in the attached annex and relate to four areas:
i) leakage reduction and leakage targets;
ii) interim duty to supply;
iii) strategic supply designation; and
iv) duration of access contracts.
These proposed modifications are likely to affect the way case specific access prices are calculated. We would therefore like to make these changes, subject to comment received, as quickly as possible.
We would be grateful for your comments on the issues in this consultation by 31 January 2006. Please respond in writing to Mike Jarema at the above address or by e-mail to michael.jarema@ofwat.gsi.go.uk.
Yours sincerely
Keith Mason
Director of Regulatory Finance and Competition
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