Water industry regulator Ofwat yesterday revoked Aquavitae (UK) Limited's water supply licence. The action follows a seven-day period where Aquavitae had the opportunity to provide Ofwat with compelling reasons why its water supply licence should not be withdrawn. The company raised no objections.

The decision to revoke was taken because the company has gone into administration. Water supply licensee must have the financial resources to carry out the activities authorised under their licence.

Aquavitae did not have any water supply licence customers, and all the company's activities have been outside the regulated water supply licensing (WSL) regime. However, Ofwat acted swiftly to protect potential new customers. The notice revoking Aquavitae (UK) Limited's water supply licence is available on the Ofwat website, http://www.ofwat.gov.uk.