IB 05/16 Companies sign up in principle to licence change proposals


Fourteen water companies have signed up in principle to a package of changes to water company licences which will enable major reforms within the sector, boosting resilience and delivering benefits for customers, the environment and wider society. Ofwat expects to hear from the remaining companies about their decision shortly.

Ofwat set out the need to change water companies licences in Water 2020: our regulatory approach for water and wastewater services in England and Wales, saying that it intended to work particularly closely with companies that, early on, accepted and supported our proposals.  Once finalised, the licence changes will be an important step in reforming the way price controls will be set in 2019.

The process for developing the licence changes has already begun.  Ofwat will issue a formal consultation on changes to the licence later this year.


  • Ofwat invited companies which it set price controls for in PR14 to sign up in principle to the licence changes
  • Ofwat is awaiting the decision of Severn Trent Water and Dee Valley Water
  • Portsmouth Water have confirmed that they are unable to contribute to the licence change process at this time.