This document invites comments on our proposals to modify all existing Instruments of Appointment to introduce three new conditions and amend some of the existing conditions, in advance of the expanded retail market for business customers which is opening in April 2017.
Under section 55 of the Water Act 2014 (WA14) the Water Services Regulation Authority (Ofwat) may modify the conditions of an appointment under Chapter 1 of Part 2 of the Water Industry Act 1991 (WIA91) where it considers it necessary or expedient to do so in consequence of provision made by or under Part 1 of WA14.
This consultation fulfils our requirement under section 55 to consult the holders of the IoAs that we propose to modify, together with the Secretary of State, Welsh Ministers and anybody else we think is appropriate.
Although there are no statutory provisions with regard to the length of the consultation period, we are bound by our wider public administrative law duties. In the circumstances of the particular modifications proposed in this consultation, we consider 28 days to be appropriate and proportionate in view of the:
- Prior consultation on this matter;
- The nature of the modifications; and
- The fact that 28 days is the minimum period for a consultation to modify Instruments of Appointment through the different, but broadly equivalent, process set out in section 13 of the WIA91.
Subject to responses to this consultation, including any statutory response from the Secretary of State or Welsh Ministers received within the consultation period, we plan to modify the Instruments of Appointment by the end of August 2016. The finalised conditions would only take effect when the retail market opens.