Written question asked by Lord Moynihan (Conservative) on Thursday, 17 September 2015, in the House of Lords. It was due for an answer on Thursday, 1 October 2015. It was answered by Lord Gardiner of Kimble (Conservative) on Thursday, 1 October 2015 on behalf of the Department for Environment, Food and Rural Affairs.

Water Companies: Competition

Question: To ask Her Majesty’s Government whether they are on target to deliver retail competition for non-household water and sewerage services in England in April 2017; whether they plan to publish a clearly defined timetable and a schedule of the trigger points necessary to meet this deadline; and whether Ofwat are able to impose financial penalties for breaches of licence conditions on companies which are not ready to become a licensee for the provision of retail services for all non-household customers by that date.

Answer: We are on track to open the non-household retail market for water and sewerage services in April 2017. All partners in the Open Water programme (the Department for Environment, Food and Rural Affairs, Ofwat and Market Operator Services Limited), are strongly committed to meeting this date. A clear timetable of the activities, which will need to be completed before the market can open, is published on Ofwat’s website and updated each month. Market Operator Services Limited is working closely with all relevant companies to ensure that they will be ready for market opening in April 2017. Incumbent water companies who want to compete in the new national retail market will need to establish a separate legal entity and apply for a Water and Sewerage Supply Licence, although they are not under any obligation to do so. Ofwat sought views on the appropriate conditions for licensees operating in the new retail market through its consultation on new Water and Sewerage Supply Licences in June 2015. It will be able to impose financial penalties on licensees who do not comply with these conditions.

Secondary information