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Disclaimer

Competition

Bournemouth & West Hampshire Water provides, we believe, high quality services to its customers. Doing so reliably involves many complex processes and round the clock surveillance and response to ensure the risk of failure remains extremely low. We also believe that we offer good value for money.

In 2002 the government announced that it would take steps to introduce competition in water supply and the Water Act 2003 amended earlier legislation to enable this in certain circumstances.

Competition has been allowed under the terms of the Water Industry Act from December 2005 for supplies of water to larger customers, that is, those using more than 50 megalitres of water a year. There are very specific criteria for eligibility which include requirements that the supply must be to a single premises or premises under common management and those separated only by certain transport infrastructure such as roads or railways.

Competition for supplies to domestic customers is not allowed.

The statutory water undertakers may face competition from firms who will have to be licensed by the Secretary of State for the Environment and will have to demonstrate that they are fit to hold such a license.

There is provision for two forms of competition:

Retail competition

Under this provision, a licensee may buy water (a wholesale supply) from an existing undertaker for retailing to an eligible customer. In this form of competition there would not normally be any physical change to the water supply. The same water would arrive at the same customers’ premises but the retailer would sit between the statutory service and the customer. He may offer other services which we could not.

Common carriage

A licensee might find a new source of water and wish to convey it to a customer. In this case he may apply to the undertaker for an agreement to access the existing undertaker’s network of pipes. Providing a number of criteria are met, including ensuring there is no undue risk to the safety of the drinking water, we would have to grant access at a charge which recovers any reasonable additional expenses we incur but which does not involve subsidy by other customers.

We are happy to answer any questions or queries on emerging competition in water. We would encourage any customer who might be considering looking for alternative supplies to contact us early in the process so that we can do our best to respond to any concerns about the present service. More information may also be found on the website of the economic regulator, the Office of Water Service (Ofwat).

INDICATIVE ACCESS PRICES

The indicative prices for access for common carriage and for wholesale supplies of water which are found below, have been calculated in accordance with guidance issued by Ofwat. The methodology used and format of presentation is set out in that guidance.

These are indicative prices only. In response to any actual application for access, we will calculate case specific prices as required by the Water Industry Act 1991. There could be differences, either positive or negative from the indicative figures given here.

The relevant retail prices referred to are as contained in our charges scheme as approved by Ofwat. For future years, figures are necessarily estimates because Ofwat must approve actual charges annually. 

 

 

 

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