Ofwat consults formally on direct procurement for customers licence changes for five firms

Ofwat has published a statutory consultation on licence amendments for Affinity Water, Anglian Water, Welsh Water, United Utilities and Southern Water, to cater for direct procurement for customers (DPC). The licence changes concern:

• establishing the DPC framework; • allowing the water company to recover from its customers, outside of price controls, the designated charges that the water company has to pay to the competitively appointed provider (CAP) for services. These services will normally include the design, build, financing, maintenance and operation of assets; and • facilitating, in specified circumstances, a DPC interim determination – such as if the project needed to return to delivery by the company rather than by the CAP.

Ofwat had previously consulted on amending Bristol Water’s licence too, but reported it had halted that for now while it discusses further with Bristol, after the company said it would not at present accept the licence amendments.

Responses are invited until 4 January.