Water industry regulator Ofwat has opened a consultation on a range of options for introducing effective market competition into the water and sewerage sectors in England and Wales.
In April 2007 Ofwat published its Outcomes paper on the conclusions of our internal review of the competition regime. The Consultation on market competition in the water and sewerage industries in England and Wales takes forward work based on the conclusions set out in that paper. In addition to the steps already considered by the regulator the new paper starts a wider review of competition in the water and wastewater sectors to enable Ofwat to look at other options for promoting the development of effective market competition.
The main focus of the consultation considers options based on developing the existing regime (some of which can be taken forward by Ofwat relatively quickly) and more substantial changes to the existing market structure and regulatory regime that could be considered if they promote effective competition in the interests of customers. The regulator has pointed out that many proposals under both sets of options would require the support of Government and others and also changes in primary or secondary legislation to implement. Ofwat will work with the Department for Environment, Food and Rural Affairs (Defra), other Government agencies and the National Assembly for Wales (“the Assembly”) while developing its approach.
The paper asks a number of questions around the options for changes and Ofwat is seeking the views of stakeholders on these. Ofwat is also holding include a workshop on 20 July to introduce and debate the issues raised in the consultation. The paper also includes a description of background market analysis work to be carried out over the coming months to provide a useful framework for potential changes and proposals.
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