IB 12/10: Ofwat varies the appointment of water and sewerage supplier


Ofwat has varied the appointment of Independent Water Networks Limited (IWN) to enable it to provide water and sewerage services to a site in London called King’s Cross Central.

New appointments and variations include one company replacing another as the statutory supplier for a specific geographic area. In this case, IWN will replace Thames Water as the statutory supplier for King’s Cross Central.

IWN will supply water and sewerage services to this large mixed-use development of 2,500 household properties and 47 non-household properties. The supply will be via bulk connections to Thames Water’s network. The developer chose IWN rather than the existing appointee to serve water and sewerage services to what is one of the largest brownfield re-development sites in Europe.

On 7 May 2010, Ofwat issued a decision document explaining its reasons for deciding to grant this variation. Ofwat decided to grant the variation once the following three conditions being met:

  1. the approval of IWN’s charges scheme for 2010-11
  2. the finalisation of bulk supply agreements between Thames Water and IWN
  3. the disconnection of a temporary supply of water for construction purposes

Once Ofwat was satisfied that these three conditions were met, it granted the variation on 24 June 2010, effective from 25 June 2010.

IWN will offer customers at King’s Cross Central a 5% discount on the volumetric water charges of Thames Water.

IWN was granted its new appointment in October 2007 for a housing development at Long Croft Road near Corby, and it has been granted further variations to this appointment enabling it to provide services at Priors Hall in Corby, Great Billing Way in Northampton, Brooklands in Milton Keynes and The Bridge in Dartford.


Notes to Editors:

  1. Ofwat (The Water Services Regulation Authority) 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.
  2. Ofwat has a duty to consider applications by companies seeking to replace existing appointees as providers of water and / or sewerage services. We assess applications thoroughly and take seriously our duty to protect consumers’ interests.
  3. Ofwat published its consultation paper on 23 February 2010 asking for views on its proposal to vary the appointment of IWN and Thames Water.
  4. Media enquiries to the Ofwat Press Office: 0121 644 7642 / 7821 / 7616 / [email protected].