Cholderton and District Water Company Limited (Cholderton) wishes to become a private water supplier. The proposal has consequences for its current and future customers.
For Cholderton to become a private water supplier, its licence would need to be terminated and another company would need to cover its area. Wessex Water Services Limited (Wessex Water) has made an application to vary its licence to cover the area served by Cholderton. Wessex Water would not take over Cholderton’s water supply network. Under the proposal, Cholderton would, therefore, continue to supply its current customers through its current network as a private water supplier.
Under Section 7, of the Water Industry Act 1991 (‘the WIA91’), Ofwat can, in accordance with a general authorisation given by the Secretary of State, vary the area to which a company’s appointment (licence) as a water undertaker relates with the consent of the company concerned. Wessex Water has applied for the proposed variation and Cholderton has agreed to the proposed variation and the consequential termination of its licence. The proposal is made with the support of the boards of both Wessex Water and Cholderton.
This consultation invites comments on the proposals. The document sets out the consequences of the proposed changes as well as the reasons for them. Appendix 1 sets out some frequently asked questions and responses to assist customers in their further consideration of the proposals.
We are particularly concerned to hear from Cholderton’s customers to ensure that the change to becoming a private water supplier has been explained to them, its consequences are clear (that they will no longer be entitled to their statutory protections and rights) and that they consider it is the best way forward for the company. We will consider all responses before deciding whether or not to proceed with the proposals
We invite stakeholders to comment on our proposed variation by no later than 28 April 2017. You can email your responses to [email protected] or post them to:
Robert Lee, Principal, Accountant
Centre City Tower
7 Hill Street