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  • by Karma Loveday

Ofwat consults on Havant Thicket bulk supply agreement licence changes

Ofwat is consulting on licence modifications for Portsmouth Water and Southern Water under section 13 of the Water Industry Act 1991, to require both parties to comply with the new Bulk Supply Agreement recently signed pertaining to the Havant Thicket reservoir. The amendments will enable Ofwat to intervene as a last resort if there is a failure to comply, to protect both sets of customers. The companies have consented to the changes.


Ofwat is also consulting – until 2 March – on guidance it plans to issue on the regulatory aspects of the Havant Thicket reservoir, to provide confidence to the parties involved and prospective investors. The guidance covers three main areas:

recovery of efficient costs over the life of the project;

treatment of the Bulk Supply Agreement should either party enter into special administration; and

regulatory treatment of the outcome delivery incentives associated with the timely delivery of the reservoir.

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