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CONSULTATION LAUNCHED ON RIVAL BID TO SUPPLY HOUSING DEVELOPMENT

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Proposals to allow a housing developer to choose a water supplier ...
Proposals to allow a housing developer to choose a water supplier

were published today by Ofwat for consultation.

Under the plan, the Fairfield Park and Lower Wilbury Farm site in

Arlesey, Bedfordshire, would be supplied by Three Valleys Water

instead of the existing statutory water company for that area,

Anglian Water.

The proposal, known as an inset appointment, will need to be approved

by the director general of water services.

If it does receive the go-ahead it will be another instance where a

rival water company has successfully competed with another water

company to supply a new development.

Three Valleys Water has confirmed that its existing customers will

not pay for or subsidise this proposal.

Notes

1. The director general of water services is the economic regulator

of the water and sewerage companies in England and Wales. He

exercises his powers in a way that he judges will allow them to carry

out their functions properly, and finance them. WaterVoice represents

customers' interests.

2. WaterVoice Thames is provisionally considered to be the

appropriate customer service committee to represent customers on the

Fairfield/Lower Wilbury Farm site.

3. Any representation about, or objections to, the proposals should

be sent in writing to Beryl Brown, Head of Competition Policy, Office

of Water Services, Centre City Tower, 7 Hill Street, Birmingham, B5

4UA (fax 0121 625 1379) so as to be received no later than 5pm

Thursday 15 July 2004.

4. An inset application must meet one of three criteria:

* The business customer is likely to use at least 100 megalitres of

water per year in England (about 22 million gallons) and 250

megalitres in Wales;

* It is a site not currently being served by a statutory undertaker;

or

* The existing licensed water supplier agrees to the inset

application.

5. When the new water supply licensing regime under the Water Act

2003 comes into force in autumn 2005 the criterion for qualifying

customer use will fall to 50 megalitres of water per year.

6. There have been, to date, nine inset appointments.

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