The water industry regulator has announced that it is revoking the water and wastewater supply licences of two independent retailers operating in the competitive water retail market – Tor Water and Peel Water.
The water industry regulator has announced that it is revoking the water and wastewater supply licences of two independent retailers operating in the competitive water retail market – Tor Water and Peel Water.
Ofwat granted water supply and sewerage licences to Peel Water Ltd. – the company was granted its licences in March 2017 when the retail market opened in England.
The Manchester –based firm applied to Ofwat for licences in January 2017 – a synopsis of the company’s business plan supporting the application said:
“After market opening Peel Water Ltd will extend the services it currently provides to its existing customer base of large water users within the Peel Group. Over the next 3 years the aim of the company is to carry on opportunistically acquiring large customers from within the Peel group and select 3rd party partners.”
Part of the Peel Group, Peel Water has been in operation since 2006 - prior to the opening of the retail market - providing a range of water services across the Peel portfolio of canals, rivers and docks. The company provides access to more than 150,000,000m3 of water per annum for both industrial and potable uses. It also provides wastewater and drainage services to land around its waterways, including the Manchester Ship Canal, Bridgewater Canal, River Medway and other docks throughout the UK.
Peel Water itself requested that Ofwat should revoke the licences with immediate effect – no information has been provided with regard to the reason for the request.
The revocation of Devon firm Tor Water comes after months of problems for the struggling retailer related to unpaid bills to three separate water companies. Ofwat had received repeated notifications from South West Water that Tor Water had become a Defaulting Trading Party. In May last year Ofwat directed Tor Water to pay outstanding and undisputed invoices or statements. However, Tor Water continued to be A Defaulting Trading Party for each month following Ofwat’s Direction.
Tor Water failed to pay the outstanding invoices and South West Water terminated its contract on 30th January.
Wessex Water has also issued a termination to Tor which is due to come into effect tomorrow unless the company pays the outstanding amount. On 14 February Bristol Water notified Ofwat that Tor Water had not met its December 2019 and January 2020 payments.
The market operator MOSL also told Ofwat last week that it had not received market operator charges from Tor Water for February 2020.
Tor Water notified Ofwat on 5 February that it would be “appointing a receiver to undertake the liquidation of the business.”
Ofwat’s revocation of the company’s licences will take effect from 6pm tomorrow.
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