CMA rules in Ofwat’s favour in Castle Water’s credit terms appeal
- by Karma Loveday
- 15 hours ago
- 1 min read
The Competition and Markets Authority has dismissed Castle Water’s appeal against Ofwat’s February decision to reject the retailer’s Wholesale Retail Code Change Proposal CPW132. This sought changes to credit terms in the business retail market in light of wholesaler financial resilience jeopardy.
Castle advanced two grounds of appeal:
That Ofwat failed properly to have regard to, and/or failed to give the appropriate weight to, the objective to protect the interests of consumers, wherever appropriate by promoting effective competition.
That Ofwat was wrong in its findings about the response of financial institutions to wholesaler distress.
The CMA rejected the appeal and confirmed that Ofwat’s February decision should stand.
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