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Ofwat consults on appointing new entrant to water and waste water sectors |
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Monday, 05 January 2009 |
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Ofwat has announced the start of a consultation into plans by Peel Water Networks (PWN) to provide water and sewerage services to 'Media City' - a new development in Salford Quays, Manchester. The application relates to a development of new houses and ten commercial properties which is within the Water Supply Area and Sewerage Services Area of United Utilities.
The regulator is proposing to grant an inset appointment to PWN, which would allow it to supply water and sewerage services to more than 378 household and 10 non-household premises. The proposal is possible because the site does not currently receive a supply of water and waste water does not drain to the public sewer, (i.e. it is not at present served by United Utilities). PWN will be making its own arrangements for surface water and highway drainage and will purchase water and sewerage services for its customers from United Utilities.
Ofwat is seeking views on its proposal to allow a change of supplier for the site. If it gets the go-ahead customers will benefit from a 5% discount on United Utilities published water (but not sewerage) fixed charges for all customers.
If appointed, PWN would be a new entrant to the regulated water and sewerage sectors. PWN is part of the Peel Land and Property Group dedicated to utility service provision. PWN will contract out the operation and maintenance of the infrastructure, until the number of customers supplied by PWN justifies the in-house provision of services.An inset appointment is the route by which one company replaces another as the appointed water and/or sewerage company for a specified area. PWN has applied under the criterion covering an area which is not served by an existing appointed company – in this instance, United Utilities. All responses to the consultation, which will be published on the Ofwat website, must be submitted by 29 January 2009.
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