Thames Water has proposed formal commitments to address complaints that its smart meter rollout programme breached competition rules.
Ofwat investigated complaints against Thames under the Competition Act 1998 that it had unfairly removed or limited access to water consumption data used by retailers and third parties.
This information was essential for some value-added services offered by retailers and third-party providers to non-household customers, including leakage detection, water efficiency and bill checking.
Complaints were made that Thames had installed smart meters that were incompatible with data logging devices used by retailers and third-party providers; that other data logging devices had been removed when smart meters were being installed; that Thames had not offered access to data from its smart meters to those third-party providers and retailers on fair terms.
Thames has now offered to introduce technology that will allow logging equipment to be attached to meters and ensure data services are provided fairly, with reasonable and non-discriminatory terms.
It has stopped proactively replacing meters that have logging equipment attached until this technology is introduced.
Furthermore, it has proposed to improve its engagement with retailers and other providers to better understand and respond to their needs.
Ofwat said these commitments, when implemented, would sufficiently address the concerns and proposes to accept them following a consultation period.
Emma Kelso, senior director of markets and enforcement at Ofwat said: “We’re pleased to see Thames recognising the need to address our competition concerns to ensure it plays its part in making sure markets work effectively. And, as the sector expands its smart meter programmes, it is important that all companies are mindful of the dominant position they hold in the market and how their actions can affect markets, customers and other providers.”
The investigation was launched in June 2019 following complaints to Ofwat for breaching Chapter 2 of the Competition Act, which prohibits conduct on the part of one or more undertakings which amounts to the abuse of a dominant position in a market within the UK.
Accepting the commitments would close Ofwat’s investigation, without making a decision on whether it infringed the Act.