Ofwat has confirmed that Aquaflow Utilities Ltd is likely to enter administration - the water regulator anticipates that around 74 business retail water market customers will be affected by the move.
Ofwat said it had been informed by the retailer that it is likely to enter into liquidation as of midnight on 9 April 2019.
The regulator is now stepping in to use its powers under the Interim Supply Code to ensure customers have a new water retailer in place as soon as possible.
The Interim Supply Code comes into effect when a licensee exits the market and there is a requirement for their customers to be reallocated.
The customers themselves will not need to take any action. Procedures are already in place to ensure affected customers are allocated a new retailer and the provision of water and wastewater services to the premises of customers will not be affected during this time.
Senior Director of Customers and Casework Emma Kelso, said:
“Aquaflow customers should be reassured that we have procedures in place to ensure there will be no disruption to your water and wastewater services.
“We are working alongside Market Operator MOSL to allocate customers to a new retailer as quickly as possible. They will contact affected customers shortly after being appointed.
“Of course, it is always difficult to see a company fail, but this is the market in action. Not all retailers will thrive and it is possible that, in the future, others will leave the market too.
As the market structures evolve, we will continue to make sure that customers are protected and continue to benefit from competition.”
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