Ofwat has announced that it has launched an investigation into whether Thames Water is contravening the Wholesale Retail Code.
The Code is the statutory code that sets out the relationship between Wholesalers and Retailers, and how the market will operate.
The water sector regulator investigating whether the £25,000 credit limit that Thames Water has set for non-primary services is consistent with the requirements of the Wholesale Retail Code.
The issue had previously formed part of the regulator's Competition Act 1998 investigation into Thames Water – however, Ofwat said it no longer considers that the CA98 is the most appropriate tool to use to carry out the investigation.
The investigation , which opened on 26th June 2020, is being undertaken under Ofwat’s powers set out in sections 66DA and 117F of the Water Industry Act 1991.
Ofwat said:
“Under sections 66DA(4) and 117F(4) of the Act, if as a result of our analysis we consider that Thames Water is not complying with the Wholesale Retail Code, we may give it a direction to take specific action to bring itself back into compliance.”
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