A kick start to competition

Water industry Regulator Ofwat has published the second determination to date in the Water Supply Licensing regime. Unable to reach an agreement on access price, both parties welcomed intervention by the Regulator. Ruling in favour of Licensee Severn Trent Select, Ofwat has increased the discount to the access costs proposed by the Incumbent to 1.31%. This paves the way for Severn Trent Select to switch the first customer.

Severn Trent Select and Northumbrian Water will be working closely together over the forthcoming months. Both organisations will develop a greater understanding of the processes involved in switching and will be able to contribute their perspectives to inform the ongoing water competition debate.

The Water Supply Licensing regime is designed to improve competition in the water industry. It enables non-household customers to choose their water supplier, if they receive more than 50 megalitres of water a year. The new regime is designed to offer customers cost saving and efficiency benefits as more water service providers enter the market.