Ofwat is today seeking views on improving companies’ licences to enhance protections for customers.
The consultation focuses on the ring-fencing provisions in company licences which are an important tool in ensuring services to customers are resilient in the long term. It is part of the package of work that Ofwat’s Chief Executive Rachel Fletcher set out in her letter to water companies CEOs to help get the sector back in balance.
Ofwat is continuing to explore how companies’ licences can be reformed to help ensure that water companies put customers’ interests at the heart of what they do.
As part of the consultation, Ofwat also considers Thames Water’s recent change of control and proposes modifications to Thames’ licence. These changes would, if taken forward, align Thames’ licence with the most up to date of Ofwat’s current ring-fencing conditions. It also proposes introducing notification requirements that apply when Thames becomes aware that a change of control is likely to occur, or has occurred. Ofwat expects to introduce similar modifications to all companies’ licences later in the year.
Ofwat Chief Executive, Rachel Fletcher said:
“Ensuring that regulated water companies are autonomous regardless of who owns and controls the company is an important way in which Ofwat protects customers.
“The changes we are proposing will help strengthen those protections and drive water companies to focus on delivering for customers at all times.”
Ofwat Press Office:
Fintan Hastings, Senior Associate – Media Relations
Tel: 0121 644 7642