Ofwat is investigating allegations that Thames Water has been abusing its dominant position in the market.
The probe, which launched last month, relates to concerns about smart meter installation, the accuracy of data shared with retailers when the non-domestic market opened up and the fairness of certain terms which Thames applies to retailers.
Ofwat confirmed today that it is looking at whether Thames has contravened the prohibition in Chapter II of the Competition Act 1998.
A spokesman for Thames said: “We will cooperate fully with the investigation, and provide all the necessary information to address any concerns.”
The allegations being investigated are described as:
- the approach that Thames Water has taken when installing digital smart meters and the impact that this has had on providers of data logging services and their customers
- the accuracy of the data about customers that Thames Water made available to retailers at the time of the opening of the business retail market
- the fairness of certain contractual credit terms that Thames Water applies to retailers
The announcement follows a difficult month for Thames, which reported a 62 per cent fall in pre-tax profits in its most recent financial year and was told it was still showing a £455 million gap between Ofwat’s estimation of its base costs for water for 2020-25 and what it appears in the company’s business plan. It also revealed the potential loss of 350 roles across the company with a further 300 positions set to be removed through not filling vacancies and terminating contractor roles.
However, the company has managed to over-perform on its target of signing up customers to its social tariff, with 85,000 at the moment, ahead of an initial goal of 82,000 by March 2020.