Ofwat consults on licence changes after South West Water applies to serve Bristol

Ofwat is consulting until 6 October on modifying South West Water’s licence and modifying its supply area following a July application from the company to provide water services to the Bristol Water area. This follows Pennon Group’s acquisition of Bristol Water in June 2021 and its clearance by the Competition and Markets Authority in March 2022. Consequently, Bristol Water’s licence will also be terminated.

Ofwat said the proposed licence changes are intended to:

• allow the price controls currently in place for South West Water's and Bristol Water's customers to continue to apply to those customers;

• allow it to set separate price controls for wholesale water activities for the Bristol area and the South West area at the next periodic review and beyond; and

• reflect some conditions from the existing Bristol Water licence in South West Water licence.

In addition, Ofwat said it was taking the opportunity to bring the requirement for South West Water to hold an investment grade credit rating in line with other companies; and implement a previously consulted on change to South West Water's licence in relation to business customers in the Isles of Scilly.