Water & Wastewater Treatment

www.wwtonline.co.uk | WWT | JUNE 2014 | 11 Comment S ome 10 months a er the Water Bill had its rst reading in the House of Commons, and despite previously strenuous opposition to the idea, the Government latterly included within the Bill a number of empowering provisions which will enable the Secretary of State to allow for retail exit. Although many water companies, Ofwat and other water sector stakeholders have long been in favour of allowing businesses to choose not to provide retail services to business customers, Defra's view was that such an option would put at risk the provision of retail services of su‚ cient quality to customers that choose not to, or are ineligible to, switch supplier. In the face of main- tained pressure, Government relented whilst the Bill was undergoing its passage through the House of Lords. A total of 12 new clauses dealing with retail exit were added to the Bill. The overall aim of these clauses is, understandably, to ensure that customers remain protected. Retail exit will be possible only by application to the Secretary of State. Exit will take place on a voluntary basis only, and will involve non-household customers only. In the nal House of Commons debate on the Bill, Government reiterated its concern to Royal Assent and retail exit The Water Bill received Royal Assent on 14 May 2014, and has become the Water Act 2014, opening up retail competition in the sector, but while the Act is going forward, what of the mechanism for getting out? avoid risk of damage to investor con dence. Areas for which provision may be included in regulations include: • the transfer of speci ed parts of a water or sewerage company's undertaking • making a transfer scheme • the form of application • payment of a fee • grounds for refusal • imposition of conditions • requiring Ofwat or the CMA to obtain con- sent from the Secretary of State before seek- ing to require an undertaker to exit • publication by the Secretary of State of di- rections for Ofwat and the CMA in relation to exercise of their functions which might bring about an exit application • provision for Ofwat to require licence modi- cations where necessary The Act will require the Secretary of State, before making exit regulations, to consult Ofwat, the CMA, the Welsh Ministers, water undertakers in England, water supply licensees, and repre- sentatives of investors in the water sector. A consultation on the content of dra regula- tions is to be launched by the end of 2014. The inclusion of investors in the list of con- sultees demonstrates Government's commitment to avoid undermining con dence in the water sector regulatory regime. What might this mean for the water industry? Clearly, it creates scope for change to the shape of the water industry in England, if water businesses decide not to remain in the market for provision of retail services to business customers. Those companies that apply to the Secretary of State will presumably do so on the basis of a strategy of focusing principally on the wholesale part of their business, at least so far as business customers are concerned. CLIVE MOTTRAM HEAD OF WATER REGULATION EVERSHEDS "Market opening is not scheduled to occur for three years, and many water sector operators are yet to fully develop a business strategy for the business retail market, let alone make decisions on whether to exit that market" Eta keeps the world on the move Etanorm Etaline Our Eta pump family keeps the world on the move. And there are plenty of big reasons: the highly efficient top-class hydraulic system. Dozens of sizes, materials and drives in almost any combination. And service that puts rivals in the shade. After millions of great pumps, the new generation is here. So discover what Eta can now do for you. www.ksb.com/eta-en • KSB Limited • 2 Cotton Way • Loughborough • Leicestershire • LE11 5TF • 01509 231872 • www.ksb.co.uk Etabloc Etanorm SYT Meet the family the fast way. All our Eta pumps at a glance. Our technology. Your success. Pumps n Valves n Service

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