Consultation on proposed amendments to licence conditions for Direct Procurement for Customers

Consultation on proposed amendments to licence conditions for Direct Procurement for Customers

Published date: February 24, 2020
Closing date:


About Consultation

Given the current circumstances we understand this is a challenging time.  In light of the issues around Covid-19, we are revising the deadline for responses to our DPC licence consultation.  We have extended this to Tuesday 21st April 2020.

The first proposed licence modification will establish the framework for the DPC procurement process.  The new condition will specify the process which companies are to follow.  In particular, under the new condition we propose that Ofwat agreement will be required for the company to:

  • undertake a DPC procurement and obtain designated status;
  • enter into a contract with the CAP;
  • vary the contract; and
  • revoke designated status.

The second proposed modification will allow a water company to recover from customers, outside of price controls, the designated charges that the water company has to pay to the CAP for services.  These services will normally include the design, build, financing, maintenance and operation of assets.  The CAP charges for these services have not been included in price controls as these will be determined through a competitive tender which, consistent with our views expressed in the PR19 methodology, can achieve significant benefits for customers.  To allow the water company to charge customers for services provided by the CAP we need to amend the charging condition within the licence.

How to respond

We invite stakeholders to comment on the proposed amendments and DPC Briefing Note by no later than 5pm Tuesday 21 April.

You can email your responses to [email protected] or post them to:

DPC Licence changes consultation
Centre City Tower
7 Hill Street
B5 4UA.

Please see the supporting document ‘Briefing Note on the Procurement Process for 2020-2025’ at the bottom of this page for further information.

We will aim to undertake a statutory consultation later this year.

Supporting documents