This document sets out our decision to modify condition N of the Instrument of Appointment (licence) of each water company1 , the effect of the modifications, and the reasons for our decision. The modifications were made under: • section 12A of the Water Industry Act 1991 (WIA91), for water companies whose areas are wholly or mainly in England; and • section 13 of the WIA91, for companies whose areas are wholly or mainly in Wales. We consulted on our proposal in August 2022. This document also sets out responses to that consultation, as well as our decisions in the light of the responses we received. The modification to each company's licence has effect from 1 January 2023.