water from a third party rather than directly from water companies.
These consumers are not direct customers of the water companies.
water. Some have felt that they are being significantly overcharged,
but have no opportunity to check whether their water charges are
Ofwat is planning to strengthen the Water Resale Order which has, for
the past four years, safeguarded against overcharging by re-sellers
of water by setting out how a maximum resale price should be worked
The Water Act 2003 introduced new powers to allow Ofwat to strengthen
the existing Water Resale Order. As a result Ofwat is proposing a
number of changes including a requirement for people to be told how
their bills are calculated, reducing bills in cases where this
information is not given, and applying interest to overcharged
The proposals are contained in the document - 'Consultation paper on
the review of the Water Resale Order' - which Ofwat issued today. It
is inviting interested parties' views on the proposed changes by July
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.
2. Under section 150 of the WIA91 Ofwat has powers to make an Order
setting out what the maximum resale price for water or sewerage
services should be, or how it should be calculated. Ofwat introduced
the Water Resale Order in April 2001. This is published in the
leaflet 'A guide to water resale'. The Order protects people who buy
their water or sewerage service from a third party rather than from a
licensed water or sewerage company. It does not apply to holiday
lets, second homes, commercial customers or private supplies.
3. The WA03 amends section 150 of the WIA91 to give Ofwat extra
powers when making a Water Resale Order.
4. Copies of the full consultation document or the summary leaflet
can be obtained from the Ofwat library, Centre City Tower, 7 Hill
Street, Birmingham, B5 4UA tel: 0121 625 1373 or can be downloaded
from Ofwat's website, www.ofwat.gov.uk
5. Responses to the document should be sent to Tracey Lopes, Consumer
Affairs Division, Ofwat, Centre City Tower, 7 Hill Street,
Birmingham, B5 4UA by 19 July 2005.