Water industry regulator Ofwat has announced that the Water Supply Licence of Satec Limited will be revoked with effect from 26 December 2013, following the company’s entry into administration in June 2012 due to an inability to pay its debts.
Satec Limited was first granted a water supply licence under section 17A of the Water Industry Act 1991 inDecember 2005 which included a retail authorisation and supplementary authorization. Known as a combined supply licence, the licence allowed Satec to introduce water into a supply system and to supply water to the premises of customers in England and Wales.
Grounds for revocation consist of:
- Satec went into administration in June 2012 due to an inability to pay its debts.
- Satec has failed to submit a Certificate of adequacy to Ofwat by 1 April 2013, certifying that it will continue to have adequate financial, managerial, technical and operational resources to carry out the activities authorised by its licence.
- Satec has failed to pay to Ofwat its annual licence fee, as required under Standard Licence Condition 9(1).
Prior to the decision to revoke Satec’s licence and to the issuing of this Notice, Ofwat tried to contact Satec on a number of occasions in relation to the matters referred to above and found that Satec was no longer trading.
An Ofwat spokesperson commented:
"On 26 November, we issued a notice of revocation of the water supply licence of Satec Limited. You can see the revocation notice here.
In this case Satec was not supplying any customers in the regulated water supply licensing (WSL) regime in England and Wales so we do not consider the revocation to have any direct impact on consumers.
We understand that Satec was also involved in activities outside the WSL regime. These fall outside the scope of its water supply licence and the role of Ofwat."
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