Today, [13 November 2024] Ofwat are announcing that it is revoking Water Supply and Sewerage Licences (“the Licenses“) of Olympos Water Limited (“Olympos Water“). The revocation will come into effect as of Friday 13 December 2024.
Olympos Water has held its Licenses since 13 June 2019, the Licenses are subject to the Standard Licence Conditions (“SLCs“) issued by the Secretary of State under section 17BA of the Water Industry Act 1991.
Ofwat is revoking Olympos Water’s Licenses under SLC10(2)(c) under the grounds that there has been or is likely to be a contravention of a principal duty, where a principal duty is defined as any condition of the licensee’s Licence or any statutory requirement imposed on it in consequence of its Licence.
Standard Licence Condition A(4)
SLC A(4) requires licensees to submit a prescribed certificate to Ofwat certifying that they have in place all the arrangements and resources needed to meet their Licence and statutory obligations over the next financial year. There is also a requirement under SLC A(4) for licensees to provide signed and dated Board minutes to confirm that the Board have signed off on the submission of the certificate. It also requires that the prescribed certificate and supporting documents are submitted by no later than 1 April each year.
Olympos Water has failed to comply with SLC A(4) since 2021, its submission have repeatedly been incomplete, incorrect and late.
In 2023 Ofwat issued a consultation on a proposed enforcement order to secure Olympos Water’s compliance with SLC A(4), during the consultation period Olympos Water brought itself into compliance with the licence requirements.
Despite the proposed enforcement order in 2023 Olympos Water continued to breach SLC A(4) in 2024 by failing to provide the prescribed certificate and supporting documents until 22 April 2024.
The prescribed certificate and supporting documents provides assurance to Ofwat that the licensee is and continues to be able to meet its statutory and Licence obligations, and that it has sufficient product and liability insurance for its authorised activities (as required by SLC A(3)). Without the submission Ofwat is unable to determine whether this is the case, and whether the licensee’s Board has duly considered the matter. While we recognise that Olympos Water does not, and has never, served any customers under its Licence, this does not exempt it from submitting the prescribed certificate and supporting documents within the timeframe stipulated in its Licence.
Standard Licence Condition A(9)
SLC A(9) requires that the Licensee pay an annual fee to the Authority by no later than the thirtieth day after the day on which the Authority serves notice on the Licensee of the amount of the fee for the year (beginning 1 April).
In relation to its licence fees for the year beginning 1 April 2022, 1 April 2023, and 1 April 2024 Olympos Water has failed to pay its licence fees within thirty days of notice being served.
On 22 August 2023, following months of attempting to contact Olympos Water, Ofwat issued a notice of demand for payment of outstanding licence fees to Olympos Water. Failure to comply with the notice would result in potential enforcement action including licence revocation. Olympos Water brought itself into compliance on 8 September 2023, when it paid the licence fees for the year beginning 1 April 2022.
Despite receiving a formal notice for payment of licence fees in 2023, Olympos Water failed to pay its licence fees for the financial years beginning on 1 April 2023 and 1 April 2024. On 21 March 2024, Ofwat’s finance team issued the invoice for licence fees for the year beginning 1 Apil 2023. Five further notices of overdue payment were issued to Olympos Water between May September 2024, Olympos Water has not acknowledged Ofwat’s correspondence, nor has it paid its licence fee therefore breaching SLC A(9).
Ofwat’s finance team raised invoices for licence fees on 31 July 2024 for the financial year beginning 1 April 2024. Olympos Water’s payment of these licence fees are also now overdue representing a further breach of SLC A(9).
Summary of Decision to Revoke Olympos Water’s Licences
On account of the above Ofwat is publishing a Notice of Revocation for Olympos Water’s Licences under SLC 10(2)(c) on the grounds that there has been or is likely to be a contravention of a principal duty, namely, SLC A4. Olympos Water’s repeated breach of both SLC A9 and SLC A4 are such that Ofwat does not believe it is appropriate for Olympos Water to continue to hold its Licences.
SLC 11 provides that in issuing a notice of revocation the revocation may not come into effect until 30 days after the notice is issued therefore the revocation of both licences will take effect on Friday 13 December.
Key documents
Notice of revocation of the water supply and sewerage licences of Olympus Water Limited