IB 01/15 Ofwat publishes bulk pricing final determination

Ofwat has today published its final decision on a bulk pricing dispute under sections 40, 40A and 110A of the Water Industry Act 1991 after consulting on our draft determination 13 February 2014.

The determination relates to prices charged by Anglian Water Services Limited to Independent Water Networks Limited for the bulk supply of potable water to and the bulk discharge of wastewater from the Priors Hall site, in Corby, Northamptonshire.

Our final determination in this case is the first final decision to be made by Ofwat’s Casework Committee which was established to make certain final decisions in strategic cases. It is also the first instance in which Ofwat has used its published framework for resolving bulk pricing disputes.

Richard Khaldi, Senior Director, Customers and Casework stated:

“Casework is a key part of our toolkit. This determination will provide guidance on our approach to those involved in bulk price negotiations and thinking of coming to us for a determination. Going forward we will use our experience of this and other current determinations to inform the development of new charging rules in this area. Working closely with stakeholders, we will ensure these can be put into practice successfully and provide a fair deal.”

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Notes to editors

 

  • The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will protect the interests of consumers, promote value and safeguard future water and sewerage services by allowing efficient companies to carry out their functions properly, and finance them.
  • The request for a determination was referred to Ofwat by Anglian Water Services Limited on 17 December 2008. It has asked us to determine the price terms to be applied in the bulk supply and bulk discharge agreements in place between Anglian Water Services Limited and Independent Water Networks Limited.
  • Using the framework referred to above Ofwat has determined that Anglian Water’s relevant Large User Tariff is the appropriate price to be applied in the bulk supply and bulk discharge agreements between the parties in this case.
  • Media enquiries to Ofwat Press Office on: Benedict Fisher 0121 644 7642 / [email protected]