Ofwat clarifies self-supply situation for firms in Wales and rethinks other issues

Ofwat has concluded that self-supply licences will not be granted for the supply of water or sewerage services to premises where the delivery systems are wholly or mostly in Wales. The issue had not been addressed in the earlier consultation.

The decision was among the regulator's conclusions following a consultation on self-supply - where a person supplies associated people such a subsidiaries of the same group.

Ofwat's conclusions in response to the consultation included two changes of tack from its original proposals.

It proposed originally to omit from self-supply licences an obligation present in the WSSL to inform the systems owner (the undertaker) about sick, disabled and other sensitive customers. On concluding that self-suppliers might supply sensitive customers Ofwat decided not to remove the sensitive customer information licence condition.

And "on further reflection" Ofwat decided to keep the same product and public liability insurance present in the WSSL in the self-service licence. It concluded that instances where a self-service licencee associate could supply the general public (for example customer toilets) were likely.

Ofwat has opted to dispense with a proposed definition of associated businesses as it said the license would be clear on who the associated businesses would be. And it did not deem that the Customer Protection Code of Practice applied to self-supply and was "minded to remove this requirement in its entirety" for self-suppliers.

Ofwat proposed no amendments to the WSSL standard conditions related to emergencies for self -service licences. And it reviewed its initial intention to add a schedule to the self-service licence the listed the premises suppliers under the licence. "On reflection we consider it is better to include a requirement that the self-supply licensee publishes a list of associated persons that are supplied under the self-supply licences each year on its website," the regulator said.