Water price limits are referred to the CC

United Kingdom

On 7th February, Ian Byatt formally referred the price limits for Mid-Kent Water, and Sutton and Surrey East Water, to the Competition Commission.

This follows requests to the Director General from both companies, under the terms of their licences, for the price limits he set on 25th November 1999 following their periodic review to be referred to the Competition Commission.

When the Director General announced the price limits, he also proposed a licence modification to allow companies to ask for a resetting of price limits if specified changes affect their revenue by more than 1%. The Director General is also referring his licence modification for these two companies to the Competition Commission. All other companies have accepted the modification.

The Director General's price limits will stand until a decision is reached by the Competition Commission whose decision will be final.

(Ofwat Press Release PN04/00)