Ofwat has opened an investigation into Albion Water about potential failures to meet regulatory requirements.
The water sector regulator has opened an enforcement case into Albion Water to investigate whether:
- it has failed to meet its obligations as a sewerage undertaker
- and/or to maintain adequate financial and management resources, and/or systems of planning and internal control, in carrying out its regulated activities.
Ofwat says this follows "concerns being identified" with the operation of the company’s Castle Hill treatment works at Ebbsfleet in Kent, and, separately the company failing to meet a number of regulatory reporting requirements.
All sewerage undertakers are required to make provision for the emptying of sewers and effectually dealing with the contents of sewers, as well as to ensure that sewerage collection systems are designed, constructed and maintained in accordance with the best technical knowledge not entailing excessive costs.
Legally, Albion Water has the same powers and responsibilities as any other water company in England and Wales.
Water companies must also ensure they have in place adequate financial and management resource, and/or systems of planning and internal control, to carry out their regulated activities
For the financial year ending 31 March 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Albion Water is a NAV - a new appointment or variation- a limited company appointed to provide a water and/or sewerage service to customers in an area which was previously served by the incumbent monopoly provider.
In December 2021, Albion Water Holdings Ltd (AWHL) entered into an agreement with Wessex Water to acquire 100% of the shares of its NAV water business which it operated as Albion Water Ltd. The transaction completed in mid-March 2022. The shares of AWHL are now 100% owned by Patrick Cullen. Patrick Cullen is also the sole shareholder in SDS Holdings Ltd which in turn owns Sustainable Drainage Systems Ltd.
Ofwat’s change of control assessment at the time did not find any issues associated with the new investors in Albion Water. As a result the regulator did not see a need to introduce additional protections in the licence as a result of the change in ownership.
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