DEFRA publishes draft priorities for Ofwat

The water industry regulator, Ofwat, needs to build the evidence base for extending competition to the household water retail market says a new draft strategic policy statement (SPS) published by the Department for Environment Food and Rural Affairs (DEFRA).

Last year, Ofwat found potential benefits of up to £2.9 billion for extending competition to the domestic market. However, the SPS says that further work needs to be done both to ensure that these benefits can be realised, and to understand and mitigate any impacts on vulnerable customers.  It goes on to say that Government needs to fully understand the case for extending competition to households.  Ministers will then take a decision at the end of the Parliament or early in the next one on whether or not to introduce competition in the household retail market.

Deadline for consultation responses is 11th April 2017.  The consultation paper can be found here .