At the moment only a small number of eligible business, charity and public sector customers (business customers) across England and Wales can choose their water retailer and most customers must use services provided by the monopoly water companies.
The UK Government is committed to opening an expanded retail market in April 2017 that will provide choice to all eligible business customers in England and Wales. For customers who are supplied using the supply systems of appointed companies whose areas are wholly or mainly in Wales the current 50ML threshold will be retained and the restriction of competition to retail water supply only will continue, reflecting the different policy position of the Welsh Government.
Transfer of retail business
On the opening of the expanded retail market and thereafter, Undertakers whose areas are wholly or mainly in England will be able to exit the business retail market and transfer their retail business customers to a holder of a water supply and sewerage licence (Acquiring Licensee).
As part of the retail exit process, Undertakers can transfer property, rights and liabilities to an Acquiring Licensee using a Transfer Scheme to ensure such property and assets in England and Wales and rights or liabilities under the law of England and Wales are effectively transferred. An example of where a Transfer Scheme may be used is where certain property, rights and liabilities would not otherwise be transferable without the renegotiation of terms and conditions.
Information note 16/10
Information note 16/10 published in November 2016 explains Transfer Schemes in this instance.
Publication of Transfer Schemes
Confirmation of our approval of each Transfer Scheme will be published on this page. The confirmation will simply identify the Parties as we do not propose to publish any Transfer Schemes.
Ofwat has established a self-certification approval process whereby applications for approval of a Transfer Scheme are supported by:
- Assurance Statement by an Exiting Undertaker
- Consent and Assurance Statement by an Acquiring Licensee
Please send applications for approval of a Transfer Scheme, including draft Schemes, and supporting documents, together with any questions to [email protected].