An information notice from water industry regulator Ofwat has outlined the principles it will apply in making changes to water company licences following a consultation with key stakeholders.
The licence modifications are needed to implement the framework for setting future price limits. The price limits need to respond to emerging sustainability and customer service challenges as well as ensuring the sector remains attractive to investors, Ofwat said.
The notice says Ofwat will protect financing of wholesale activities by linking wholesale price to inflation; however the regulator says that it needs a degree of flexibility to define wholesale activities to meet legislative and regulatory objectives. This could allow sludge disposal activities to move outside the wholesale control in the longer term, Ofwat said.
Ofwat also requires flexibility in setting price controls for non-wholesale activities, meaning that the conditions of appointment in Section 13 of the Water Industry Act 1991 need to allow for changes in the number, duration and form of price controls by introducing, for example, “less intrusive controls for services where customers have choice.”
However, Ofwat says that it will limit the areas of flexibility in wholesale activities to make sure they do not jeopardise the financing of the wholesale function.
Ofwat aims to provide certainty on the scope of the licence modifications by the time its detailed methodology for setting price limits is published in spring 2013.
If the water companies agree with the modifications, Ofwat expects the revised conditions of appointment could be in place by December 2012. However, if agreement isn’t reached after further consultation, the matter may be referred to the Competition Commission, delaying proceedings by up to six months.
Attendees at next month’s National Civils Show, Floodex, National Drainage Show and Waterways Management on 26th and 27th November are set to benefit from an expert speaker line-up and the opportunity to visit a wide range of exhibitors all co-located in one place at Excel, London, one of the UK’s leading international exhibition and convention centres.
Tackling leakage is one of the fastest and most cost-effective ways for utilities to bolster water security, writes Ben Crabtree, Product Line Director, Ovarro, revealing how the potential of smart technologies is being demonstrated around the world.
UK-headquartered South Staffordshire Plc, the integrated services group operating within the UK critical infrastructure and essential services markets, has received a prestigious Royal Society for the Prevention of Accidents (RoSPA) Award for global health and safety excellence.
Balfour Beatty, the UK’s largest construction and infrastructure provider, has delivered exceptional environmental results on the Thames Estuary Asset Management 2100 (TEAM2100) framework, one of the nation’s most ambitious flood defence initiatives.
Hear how United Utilities is accelerating its investment to reduce spills from storm overflows across the Northwest.
Find out more about the remarkable career opportunities on offer at WSP - scroll down to watch the inspirational video. 
What is to be done about the UK’s failing utilities? Listen to Professor Dieter Helm explore the options to tackle the UK’s failing utilities – Thames Water, the Royal Mail and Network Rail in particular.