Ofwat has launched a consultation on proposed modifications to Conditions B, N and T of Thames Water’s licence.
The water regulator says the modifications it is proposing to Thames Water’s licence are designed to address three issues:
• Ofwat is mainly funded by licence fees paid by water companies (an Annual General Fee and, if required, a supplementary Special Fee). Condition N: Fees of each company’s licence contains a cap on those fees. Ofwat is proposing to amend Thames Water’s Condition N to ensure that Ofwat can recover from Thames Water the costs of company specific work in relation to its asset improvement gated allowance (and growth at Sewage Treatment Works (STWs)).
• Amendments are required to Condition B (Charges) to correct an error that was made when licence amendments were made in 2024 to introduce licence provisions in relation to the regulation of projects being delivered under Direct Procurement for Customers (DPC). By using standard text, Ofwat inadvertently removed certain provisions relating to the Thames Tideway Tunnel (TTT) and the third party licensed infrastructure provider (IP) for that project. The proposed amendments will correct that error.
• Following the introduction of the DPC licence provisions, consequential amendments are required to Condition T (Thames Tideway Tunnel Project).
This consultation invites comments on the proposal of the Water Services Regulation Authority (Ofwat) to modify Conditions B (Charges), N (Fees) and T (Thames Tideway Tunnel Project) of the appointments (licence) of Thames Water Utilities Limited (Thames Water) as a water undertaker and a sewerage undertaker.
Ofwat is able to modify the conditions of the licence of a water company whose area is wholly or mainly in England under section 12A of the Water Industry Act 1991 (WIA91) subject to the procedural requirements set out in that Act. This document is a notice under section 12A of the WIA91 in relation to Thames Water.
The deadline for submissions to the consultation is Friday 20 June 2025, and can be made by email to PR24@ofwat.gov.uk or post to:
Thames Water licence modification consultation response
Ofwat
Centre City Tower
7 Hill Street
Birmingham B5 4UA
Ofwat intends to publish responses to this consultation on its website.
