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Implementation of the new regulatory arrangements in the Water Act 2003

Competition in the water industry

Implementation of the new water supply licensing regime was led by Ofwat, working closely together with Defra and the Welsh Assembly Government. This included joint consultation exercises covering guidance, Statutory Instruments, amendments to water undertakers' conditions of appointment and proposed Standard Licence Conditions.

Further information about water supply licensing is available on the Ofwat website. There you can also find relevant documents, register for information and send enquiries:

The consultation process and new Secondary Legislation

Defra led on the secondary legislation necessary to implement the new regime and on the development of the standard conditions of water supply licences.

The Regulations and standard conditions can be accessed below, as well as the Government response documents to the consultation exercises.

The Water Supply Licence (Application) Regulations 2005

Water Supply Licences are available on application to Ofwat. Ofwat has published guidance prescribing the detailed form and manner of applications, setting out the application fee, and prescribing the manner in which a notice of application will have to be published.

Standard Licence Conditions of Water Supply Licences

Licensees have to abide by Standard Licence Conditions, determined by the Secretary of State after consulting the Welsh Assembly Government.

The Water Supply Licence (Modification of Standard Conditions) Order 2005

Ofwat may modify Standard Licence Conditions collectively without the need to obtain the individual agreement of each licensee. A modification cannot be made if the percentage of relevant licence holders that object exceeds a prescribed percentage (by number or market share), as prescribed by this Order.

The Water Supply Licence (New Customer Exception) Regulations 2005

Licensees have to assess whether the volume of water to be supplied to a new customer is above the eligibility threshold. These Regulations provide for circumstances in which the eligibility threshold will not have to be measured.

The Water Supply (Exceptions from Supply System Prohibitions) Regulations 2005

Access to a water undertaker's supply system is prohibited from 1 December 2005 to anyone that is not a licensee or, in some circumstances, another water undertaker. The Regulations prescribe other circumstances in which the prohibition does not apply.

The Water Act 2003 (Consequential and Supplementary Provisions) Regulations 2005

These Regulations make amendments giving effect in primary and secondary legislation to the Water Supply Licensing regime. They also provide for the establishment of the new Consumer Council for Water and the Water Services Regulation Authority, and the abolition of the Ofwat Customer Service Committees and the Office of the Director General of Water Services.

Water Supply Licence (Prescibed Water Fittings Requirements) Regulations 2005

The Water Industry Act 1991 requires water undertakers to grant licensed water suppliers access to their supply systems under certain conditions in order to supply water to eligible premises of customers.

One condition relates to prescribed water fittings requirements under the Water Supply (Water Fittings) Regulations 1999 which provide appropriate protection to water supply systems.

The prescribed requirements relate to the installation, connection, arrangement and use of water fittings to prevent waste, misuse, undue consumption or contamination of water supplied by water undertakers or licensed water suppliers.

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Page last modified: 21 November 2005
Page published: 28 July 2005

Department for Environment, Food and Rural Affairs