Water companies are weighing up the risks of rejecting Ofwat’s controversial Section 13 licence change proposals, Utility Week understands.
All are considered likely to benefit from less radical changes to their licences if the matter is referred to the Competition Commission. However, the individual firm that triggers a referral risks incurring costs and damaging its relationship with the regulator.
Each firm has until 23 November to decide whether to reject or accept Ofwat’s proposals. Industry sources said several were seriously considering rejecting the plans, a move that would prompt Ofwat to refer the matter to the Commission.
Ofwat chief executive Regina Finn denied to MPs last week that the regulator was acting outside its powers and pre-empting draft legislation. “We are not seeking to do anything beyond what we need to do to regulate the sector effectively,” she insisted.
This article first appeared in Utility Week’s print edition of 9th November 2012.
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