Portsmouth Water has published details of the wholesale charges for 2017-18 which will apply in the new non-household retail market which opens for business in April.
Introducing the charges which come into effect on 1st April, Portsmouth Water said that the physical supply and distribution of water to end users would, for the time being, remain a regional monopoly service where the standard of service and prices would remain regulated by Ofwat.
However, the provision of Business Terms and codes of practice for the separate wholesale and retail services within the water supply industry would continue to evolve, even when the market has opened. The water company said it reserved the right to amend the policies as market opening develops and the creation of market policy documents via the Open Water programme progresses.
Development of the tariffs followed two key steps:
- identification of the wholesale cost base, separated by functional activity;
- allocation of the wholesale costs to distinct customer classes / segments.
All wholesale charges for primary and standard non-primary services will be based on the calculations in the Open Water central market settlement systems and will be billed monthly.
The payment terms offered by Portsmouth Water vary dependent on whether retailers have selected a prepay payment in advance or a postpay payment in arrears option.
Retailers who have selected a postpay payment term are required to provide and maintain credit support.
Click here to download Scheme of Charges 1 April 2017 to 31 March 2018
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