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ARTICLE · 04 APRIL 2008

Water Competition: Determination Of Access Prices

Ofwat has determined that the discounts from existing retail charges offered by Anglian Water Services Limited to Aquavitae (UK) Limited in relation to four identified customers should have been greater than those Anglian had proposed.

United KingdomAntitrust/Competition Law
Munir Hassan
Munir Hassan
Robert Lane
Robert Lane

Ofwat has determined that the discounts from existing retail charges offered by Anglian Water Services Limited to Aquavitae (UK) Limited in relation to four identified customers should have been greater than those Anglian had proposed.

This determination reflects a change of approach by Ofwat to the issue of access prices since the criticism of Ofwat's original proposed approach by the Competition Appeals Tribunal in the Albion case on 26 May 2004.

Ofwat published its final determination on Friday 28 March 2008 in respect of an original dispute that arose when Aquavitae claimed that Anglian Water's proposed wholesale access prices were too high. Notwithstanding Ofwat's higher determined discounts, the level of discount arising from the application of Ofwat's methodology remains low and Ofwat was disappointed with the results of its determination in the context of incentivising water competition.

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