| Some competition and choice has been available in the industry for some time, via private supply arrangements, the inset appointment process, cross border supplies and through conservation and recycling investments. |
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Our central location and high technical expertise mean that, within the appropriate regulatory environment, we will continue to develop better services to more customers, whilst maintaining our high quality, dependability and service standards.
developments in the legal framework
Since June 2000, Severn Trent Water has maintained a Network Access Code to comply with its obligations to allow access to ‘essential facilities’ under the Competition Act 1998 in line with OFWAT guidance. Severn Trent Water will continue to make available copies of this Network Access Code at least until 1st December 2005.
A new regime came fully into effect from the 1st December 2005.
However, the Water Act 2003 amended the Water Industry Act 1991 to introduce a new licensing framework for both retail and common carriage competition. These new arrangements apply to non-household customers using more than 50,000 litres per annum connected to undertakers’ supply systems. At the same time the Act prohibits retail and common carriage competitive supply to household customers connected to undertakers’ supply systems.
In order to access an undertaker’s network a Company will have to apply to Ofwat for a Water Supply Licence, and it is a requirement of this regime that Severn Trent Water Ltd publishes and maintains a new access code setting out the principles governing the use of its network services by such licensed water suppliers.
In a number of ways this new access code supersedes the previous Severn Trent Water Network Access Code which set out the principles and process for third party suppliers to access any essential facility owned by Severn Trent Water under Competition Act 1998.
What is common carriage?
Common carriage occurs when one company puts water into another undertaker’s network, and pays the undertaker to transport it.
What is retail competition?
Retail competition requires existing water undertakers to sell water to licensed water suppliers, on reasonable terms, to retail on to their own customers. For retail competition, the source of the water remains the same; though other aspects of serviceability, including billing and customer contact will change dependent upon the supplier.
