Ofwat axes Tor Water’s licences and allocates customers to four retailers

Ofwat revoked Tor Water’s Water Supply and Sewerage Licences (WSSL) last week. This followed Wessex Water, Bristol Water and MOSL echoing concerns South West Water has raised for many months – that Tor had not paid its bills – and Tor's failure to provide all the information Ofwat repeatedly requested about the matter.

South West Water terminated Tor’s wholesale contract on 30 January 2020 after identifying the south west based retailer as a defaulting trading party. Tor’s customers in South West Water’s area were transferred to Pennon Water Services following the contract termination.

Now Tor’s WSSL has been revoked, its customers in the Wessex and Bristol wholesale areas have been transferred under the terms of the Interim Supply Code to other retailers. Fifty one supply points have been allocated in roughly equal numbers between Water2Business, SES Business Water, Yu Water and Smarta Water. Tor had been licensed since June 2018.

• Ofwat revoked Peel Water’s WSSL last week, following a request from the company.

• The regulator also published notice of a proposal to revoke the licences of NWG Business, following its merger with Anglian Water Business (AWB) under the Wave brand.

NWGB wishes to give up its licences and rely on AWB’s licences. Ofwat has proposed inserting a special condition into AWB’s licences to require it to fulfil the role of backstop supplier in the Northumbrian Water area, to plug a gap that would be left if NWGB’s licence is revoked.