Ofwat determines WSSL licence fees

Ofwat has now determined the fees payable for the 2017-18 financial year for each water supply and sewerage licensee to cover regulatory administration of, and CC Water’s work on, the new WSSL regime.

This followed the publication earlier this month of Information Notice IN17/07 to clarify the principles the regulator would apply in determining these fees. IN17/07 confirmed the approach Ofwat set out in its March 2017 consultation, including that licence fees will be based on both a flat fee element and a variable element based on market share, calculated using the wholesale charges paid by WSSL licensees.

Ofwat also confirmed the total cost estimates for 2017/18 it published in March 2017: its own costs in relation to the WSSL regime are £998,000, which it splits (50%) to WSSLs and the remainder to appointed undertakers; while CC Water’s costs are £448,000, split 64% to WSSLs and the remainder to appointed water companies.