• by Karma Loveday

Ofwat consults on direct procurement licence changes for six firms

Ofwat is consulting until 3 September on a new licence condition and two licence condition amendments for the six companies that will or may deliver direct procurement for customer schemes as part of their PR19 determination.


The companies are:Anglian Water, Welsh Water, United Utilities, Southern Water, Affinity Water and Bristol Water. The new licence condition would establish the processes by which each could undertake the procurement of a third party, competitively-appointed provider.


The consultation also covers amendments to Condition B to permit the water company to pass on to its customers the charges payable to the competitively appointed third party service provider; and to create a specific interim determination mechanism for changes to price controls in relation to direct procurement for customers.


Ofwat first consulted on these issues in February 2020 and plans to publish details of its final, proposed modifications later this year.

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