Ofwat slashes the self supply licence application fee

Ofwat has simplified the process and nearly halved the cost for business customers to apply for self supply licences.

Until now, self supply applicants have had to go through a very similar process to those applying for standard Water Supply and Sewerage Licences. Following a consultation in March/April, the regulator has now introduced a separate application process, with a separate application form and guidance document, and reduced the application fee from £5,250 to £3,000. This reflects the reduced time and information needed to assess self-supply applications.

Ofwat modified its proposed guidance and forms in light of consultation responses, particularly from Waterscan. It also responded to a query from Yorkshire Water Business Services on whether greater emphasis should be placed on establishing the capability of any sub-contractor that provides services to self-suppliers. The application form now requests:

• information on how the applicant plans to use the third party and the role they will have in enabling the applicant to operate as a self-supply licensee;

• an explanation of the relevant duties and responsibilities of the third party and how these have been contracted

• the anticipated costs for this service to the applicant;

• detail on the managerial and technical capability of the third party; and

• contingency plans the applicant has for operating in the market should this agreement end (if, for example, the relationship was to break down).