Bournemouth Water

Water Act 2003Water Supply Licensing

Access Code

Version 1October 2015

Contents

1 Overview 31.1 Role of the access code 31.2 Relevant framework documents 51.3 Role of key industry players 61.4 Definition of services 121.5 Contact details 13

2 Application for access to the supply system 152.1 Process requirements 152.2 Confirming eligibility 182.3 Application process 212.4 Access criteria 33

3 Customer transfer protocol 373.1 Principles 373.2 Rules of behaviour 373.3 Data transfer 373.4 Registration and operational processes 38

4 Control and balancing of supply system 394.1 Supply system management 394.2 Metering services 434.3 Supply system balancing 46

5 Supply system maintenance and emergency procedures 515.1 Diagnosis of system issues 515.2 Planned system maintenance 575.3 Unplanned system maintenance 585.4 Safety aspects of unplanned and emergency work 595.5 Emergency procedures for dealing with specific events and incidents 605.6 Customer protection 615.7 Support processes 625.8 Reportable situations 625.9 Security and Emergency Measures Direction 63

6 Customer contact arrangements 646.1 Customer contact arrangements for operational queries and complaints 646.2 Customer contact arrangements for emergencies and events 67

7 Supply system connections 707.1 Connection of licensee’s source to supply system 707.2 Connection of qualifying premises to supply system 707.3 Connection of secondary water undertaker’s supply system to primary

water undertaker’s supply system71

8 Legal contract, arbitration and disputes resolution 728.1 Contract terms 728.2 Arbitration and disputes resolution processes 76

9 Operation code for wholesale supplies 799.1 Overview of the operational code 809.2 Applying for access 829.3 Access pricing 849.2 Dispute resolution procedure 86

10 Access pricing 8910.1 Indicative access prices 8910.2 Case specific access prices 94

11 Glossary of defined terms 95

Appendices

A Confidentiality agreement 99

B Application fees 109

C Water quality information 110

D Indicative information requirements for combined supplies 118

E Initial application form for a combined supply 120

F Common contract for a wholesale supply 122

(Note – Appendices A (Confidentiality agreement), E (Initial application form for a combined supply), and F (Common contract for a wholesale supply) are separately available on the BW website in Word format)

1 Overview1.1 Role of the access codeThis section outlines the background to Water Supply Licensing, clarifies the relationship between the access code and the access agreement, and sets out the principles which BW will adopt in assessing applications by licensees

1.1.1 Introduction

The Water Act 2003 (WA03) amended the Water Industry Act 1991 (WIA91) to extend opportunities for competition in water supply in England and Wales. From December 2011, customers who are supplied with at least 5 Ml per year in eligible premises will be able to purchase water either from their existing water undertaker or from a water supply licensee.

The Water Act 2014 (which received Royal Assent on 14 May 2014) includes provisions that will eventually remove the costs principle from legislation - the application of which has been widely cited as creating an inefficient barrier to competition - and replace it with a new charging regime based on Ofwat charging rules developed in the light of Government charging guidance.

A licensee is a company holding a Water Supply Licence. This allows the licensee to access the water undertaker’s supply system to supply water to eligible premises. The supply can take one of two forms:

a wholesale supply, where the licensee buys a wholesale supply from a water undertaker and sells it to eligible customers

a combined supply, where the licensee introduces water into the undertaker’s supply system for the purposes of supplying it to eligible customers.

Each water undertaker is required to publish an access code setting out the basis upon which it will permit access to its supply system. This document is the access code for Bournemouth Water (BW).

Ofwat first published its guidance document for the content of access codes under the new Water Supply Licensing (WSL) regime in June 2005, and has subsequently published a number of amendments to the guidance. BW has prepared this access code in accordance with the latest published guidance and with the access code template, and will update it as required to remain compliant with the guidance. The access code will be reviewed at least annually, and if any amendments are required in connection with that review, an updated access code must be published, normally by 15 October each year. Potential applicants for access should ensure that they are working to the latest version of the code. The version on the BW website will always be the latest version.

A hard copy of this access code is available on request (see 1.5 for contact details).

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1.1.2 Principles

BW will act with a professional and positive approach to applications by licensees. BW will apply fair and reasonable principles to a licensee such that the technical and administrative standards expected of the licensee are no more and no less stringent than would be applied internally, and which are considered to be good practice.

In return, BW expects to see an approach and a level of performance by the licensee that demonstrates competence and a good understanding of water supply operations and management, and in particular a good understanding of water quality and the legal requirements for public water supply.

BW has prepared this access code to conform with a number of high level principles, which will also govern the negotiation of access agreements with licensees:

BW has a statutory duty under the WIA91 to supply water to premises in its area

BW will retain responsibility for the ownership, management and control of all elements of the water supply system

BW regards the quality of water entering, flowing through and leaving its supply system into customers’ premises as being of paramount importance

BW expects to provide the same standards to all its customers in terms of water quality, levels of service, environmental protection, and operational and emergency procedures.

1.1.3 Access code and access agreement

This access code contains guidance for licensees about the use of our supply system, for wholesale, combined and secondary supplies. Each application for access will be determined on its own merits, in accordance with the version of the access code current at that time. The guidance is generic but should provide sufficient information for the licensee to assess the outline terms and conditions for the licensee’s particular proposed supply. The actual terms and conditions for each specific supply will be set out in an access agreement or contract to be negotiated between BW and the licensee.

Access to the supply system, whether wholesale, combined or secondary, is illegal until an access agreement has been executed between BW and the licensee for that specific supply.

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1.2 Relevant framework documentsPrimary and secondary legislation

Water Industry Act 1991 (amendments by Water Act 2003)http://www.legislation.gov.uk

The Water Supply (Exceptions from Supply System Prohibitions) Regulations 2005http://www.legislation.gov.uk/

The Water Supply License (New Customer Exception) Regulations 2005http://www.legislation.gov.uk/

The Water Supply License (Application) Regulations 2005http://www.legislation.gov.uk/

The Water Supply (Water Fittings) Regulations 1999http://www.legislation.gov.uk/

Competition Act 1998http://www.legislation.gov.uk/

Statutory and non-statutory guidance

Guidance on Access Codeshttp://www.ofwat.gov.uk

Guidance on Eligibilityhttp://www.ofwat.gov.uk

Guidance on Applying for a Water Supply Licensehttp://www.ofwat.gov.uk

Customer Transfer Protocolhttp://www.ofwat.gov.uk

Guidance on Strategic Supplieshttp://www.ofwat.gov.uk

Guidance on Secondary Supplieshttp://www.ofwat.gov.uk

Water Supply Licensing Determinations Procedurehttp://www.ofwat.gov.uk

Memorandum of Understanding between the Competition and Markets Authority and the Water Services Regulatory Authorityhttp://www.gov.uk/government/organisations/competition-and-markets-authority

Conditions of Appointment

Company Instrument of Appointmenthttp://www.ofwat.gov.uk

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Other relevant documents

DWI Information Letter 13/04 Common Carriage: Guidance on the Drinking Water Quality Aspectshttp://dwi.defra.gov.uk/

DWI Guidance on the Water Supply (Water Quality) Regulations 2000 http://www.legislation.gov.uk/uksi/2000/3184/contents/made

Water Undertakers (Information) Direction) 2012http://dwi.defra.gov.uk/

DWI Guidance on the Notification of Eventshttp://dwi.defra.gov.uk/

1.3 Role of key industry playersThis section defines the accepted duties and obligations of all the key players in the WSL regime

1.3.1 Water undertaker

Bournemouth (BW) is the appointed water undertaker covering Bournemouth, Christchurch, and parts of western Hampshire, eastern Dorset and southern Wiltshire. It is responsible for the public water supply network in this area. Further information on BW can be found on its websitewww.bournemouthwater.co.uk

Chapter 2A WIA91 places duties and obligations on water undertakers subject to certain conditions. BW is obliged to provide the following services subject to the conditions detailed below:

Primary undertaker

Wholesale water supply

Where a licensee requests BW to provide a supply of water under section 66A WIA91, and the premises are within BW’s area, BW has a duty to take steps necessary to enable provision of the supply, and having taken those steps to provide the supply.

The terms and conditions on which BW carries out these duties are agreed with the licensee in accordance with Ofwat’s access code guidance and the costs principle.

Introduction of water into water undertaker’s supply system

Where a licensee requests BW’s permission to introduce water into its supply system, under section 66B WIA91, and in line with the requirements of the retail

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authorisation aspects of the combined licence, BW has a duty to take steps to enable the licensee to make the introduction of water into the supply system and, having taken such steps, to permit the introduction of water into its supply system, as requested.

Where a combined licensee requests BW to permit the introduction of water, as supplied by a neighbouring secondary undertaker, into its supply system for the purposes of supplying its customers within BW’s area, BW has a duty to take steps to enable the licensee to make the introduction of the water into its system. This is in accordance with section 66C WIA91. These steps may include connecting BW’s supply system to the neighbouring secondary undertaker’s supply system. Having taken such steps, BW has a duty to permit the introduction of water into its supply system, as requested. Where appropriate, the licensee, primary water undertaker and secondary undertaker may agree trilaterally the terms and conditions of access.

The terms and conditions on which BW carries out these duties are agreed with the licensee in accordance with Ofwat’s access code guidance and the costs principle.

Secondary undertaker

Where a combined licensee requests BW to provide a supply of water to enable it to supply its customers’ premises by using a neighbouring primary water undertaker’s supply system, under section 66C and in accordance with its retail authorisation, BW has a duty to take steps to enable the provision of the supply and, having taken those steps, to provide that supply.

The terms and conditions on which BW carries out these duties in its capacity as a primary or secondary undertaker are agreed with the licensee in accordance with Ofwat’s access code guidance and the costs principle. The introduction by a licensee into BW’s water supply system of a supply obtained from a secondary undertaker involves two transactions, governed by separate agreements:

firstly, the secondary undertaker sells water to the licensee secondly, the licensee introduces that water into the primary water

undertaker’s water supply system.

Where appropriate, the licensee, primary water undertaker and secondary undertaker may agree trilaterally the terms and conditions of access.

Licensees shall identify and communicate at the earliest stages if a secondary undertaker is likely to be included within an application. This will enable potential secondary undertakers to consult at the earliest opportunity with relevant parties including the primary undertaker, the EA and the DWI, if necessary.

The secondary undertaker will need to understand the demand requirements of the licensee and an indication of the point to which connection to the primary undertaker’s supply system is required. It will also need to discuss with the primary undertaker details of the transfer, including the design of pipework and any pumping arrangements that may be required, any water quality issues and whether any facilities need to be constructed.

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If BW is identified as a secondary undertaker within an access application, BW expects to be involved as necessary in discussions with the licensee and the primary undertaker. BW expects to receive copies of relevant details during the initial and detailed application stages for comment, and to be able to request further details as necessary.

Conditions under which duties do not apply

Wholesale water supply

Section 66A WIA91 documents the circumstances under which the wholesale water supply duty by a primary undertaker does not apply.

The duty to provide a supply of water to a licensee, or to take steps to enable it to provide such a supply, do not apply if both the first and second conditions below are satisfied, or if the third condition below is satisfied.

The first condition is that:

the premises to be supplied by the licensee consist only of land, that is they do not include a building or part of a building; or

the supply to be made by the licensee to the premises is not for domestic purposes.

The second condition is that the provision of the supply by BW would:

require BW to incur unreasonable expenditure in carrying out works, in order to meet all its existing obligations to supply water for domestic or other purposes, together with its probable future obligations to supply water to buildings or parts of buildings for domestic purposes; or

otherwise put at risk BW’s ability to meet any of those existing or probable obligations.

The third condition is that there is a contravention, as determined in regulations made under section 74 WIA91 and related to section 66A(6) WIA91, in relation to the water fittings used or to be used in connection with:

the supply of water to the premises to be supplied by the licensee; or the use of water in those premises.

Combined and secondary water supplies

Under sections 66B and 66C WIA91, a primary undertaker has no duty to permit the introduction of water by a combined licensee into its supply system, and under section 66C WIA91 a secondary undertaker has no obligation to provide a wholesale supply of water, if either the first or second condition below is satisfied.

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The first condition is that providing the supply or allowing the introduction of the water into the primary water undertaker’s supply system:

would require BW, in order to meet all its existing obligations to supply water for domestic or other purposes, together with its probable future obligations to supply buildings and parts of buildings with water for domestic purposes, to incur unreasonable expenditure in carrying out works; or

would otherwise put at risk its ability to meet any of those existing or probable future obligations.

The second condition is that there is a contravention of the prescribed requirements of regulations made under section 74 WIA91 in relation to the water fittings used or to be used in connection with:

the supply of water to the premises to be supplied by the licensee; or the use of water in those premises.

1.3.2 Licensee

Licensees are the entrant suppliers under the WSL regime. Licensees are responsible for obtaining a licence appropriate to the activities to be undertaken and will have undergone an assessment of their financial and technical compliance by the appropriate regulatory bodies (Ofwat and DWI). Licensees must comply with the terms of their licence, with relevant legislation and with the contractual arrangements as set out in access agreements.

Section 66I WIA91 prohibits unauthorised use of a water undertaker’s supply system for the purpose of supplying water to a customer’s premises, unless done so by the water undertaker or by a licensee under the terms of its licence. Under section 66I(3) WIA91, unauthorised use for the purpose of supplying water to a customer’s premises is a criminal offence. Licensees have a duty to assure themselves that the terms of their licence allow for the use of BW’s supply system.

Section 66J WIA91 prohibits unauthorised introduction of water into a water undertaker’s supply system. Introduction of water is only permitted by the primary water undertaker itself, or by a licensee under the terms of its licence, or by another water undertaker under an agreement for a bulk water supply. Under 66J WIA91, contravention of this prohibition is a criminal offence. Licensees have a duty to assure themselves that the terms of their licence allow for the introduction of water into BW’s supply system.

Licensees share responsibility with BW for compliance with the Water Supply (Water Quality) Regulations for the water they input to the supply system, and for the wholesale supply of water to the customer’s tap.

Licensees have a duty to comply with the eligibility requirements as specified in section 17A(3) WIA91 relating to non-household premises, the threshold requirement, and supply by only one licensee.

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1.3.3 Ofwat

The Water Services Regulation Authority (Ofwat) is the economic regulator of the water industry in England and Wales.

WIA91 introduced a new duty to further the consumer objective. This is to protect the interests of consumers, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the provision of water and sewerage services.

Ofwat is required to publish guidance on the operation of the WSL regime.

Ofwat is responsible for granting water supply licences for wholesale and combined services. In doing so, Ofwat will assess whether the applicant has the appropriate skills and competencies required.

Ofwat also has powers to determine disputes about the eligibility of premises, the terms and conditions of proposed access agreements and the conditions for refusing supplies.

Further information is available on Ofwat’s website under WSLhttp://www.ofwat.gov.uk

1.3.4 Drinking Water Inspectorate

The Drinking Water Inspectorate (DWI) will need to be satisfied that the licensee is aware of, and understands, its regulatory duties and responsibilities in respect of drinking water quality at the initial licence application stage. Where a combined licensee intends to treat a source of water for potable supply, the treated water cannot be introduced into the public supply system until the DWI is satisfied that the treatment processes meet the relevant regulatory requirements and the works is being operated in a competent manner.

During access negotiations DWI will advise Ofwat as necessary on drinking water quality issues relating to the use of common carriage, particularly in respect of dispute resolution.

Overall, licensees will be subject to the same level of regulation as undertakers.

Further information can be found in the WSL section of the DWI's websitehttp://dwi.defra.gov.uk/

1.3.5 Environment Agency

The Environment Agency has a duty to secure the proper use of water resources in England and Wales. It monitors water in the environment and issues abstraction licences to regulate who can take water from the environment and how much can be taken.

Water undertakers currently produce Drought Plans every 5 years, which identify how, during a period of drought, they will continue to meet their duties with as little recourse as possible to drought orders or drought permits. From October 2005 the production and publication of these plans became a legal requirement. The

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Environment Agency reviews these plans and advises the Government on their adequacy.

Water undertakers also produce Water Resources Management Plans every 5 years, which identify available resources, forecast demand and set out how future deficits may be addressed through either resource development or demand management options. The Environment Agency also reviews these plans and advises the Government on their adequacy. Water Resources Management Plans became a statutory requirement in 2006.

There is a duty on water supply licensees to provide information to water undertakers for both Drought Plans and Water Resources Management Plans.

In most cases, applicants with combined supply licences will require an abstraction licence from the Environment Agency to take water from surface water or groundwater. Every new proposal to abstract or impound water undergoes extensive scrutiny and investigation before a decision is made to grant or refuse an abstraction licence. There is a need to ensure that water resources are safeguarded and that abstractions do not have an unacceptable impact on the environment.

Secondary supplies (under section 66C of the WIA91) are meant to encourage use of spare water, but the undertaker and the licensee may not be able to agree on how much water the undertaker has spare. In the absence of agreement, Ofwat may be asked to determine whether a supply under section 66C should be made, and if so the terms of that supply.

In these instances, the Environment Agency will also play a role in advising Ofwat on whether the criteria for rejecting a proposal for a secondary supply under sections 66C(5) or (6) of the WIA91 are satisfied. Ofwat will then make a determination.

Further information is available on the Environment Agency’s websitehttps://www.gov.uk/government/organisations/environment-agency

1.3.6 Department for the Environment, Food and Rural Affairs

The Department for the Environment, Food and Rural Affairs (DEFRA) is the government department responsible for WSL legislation.

The Secretary of State has issued statutory instruments which govern the competition regime. The Secretary of State may issue further instruments in the future which may affect the regime. Where this is the case, BW will revise this access code to reflect relevant changes.

Further information is available on DEFRA’s websitehttp://www.defra.gov.uk

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1.4 Definition of servicesThis section defines the services offered under WSL and under this access code in particular

BW will offer services to a licensee for the purposes of supplying water to the licensee’s eligible customers, subject to terms and conditions agreed with the licensee in accordance with Ofwat’s access code guidance and the costs principle. These services are defined in terms of BW being either the primary undertaker (section 66A and 66B of the WIA91) or a secondary undertaker (section 66C of the WIA91).

1.4.1 Primary water undertaker

Wholesale water supply

BW will take steps to enable the provision of the supply, and having taken those steps, provide the supply of water in accordance with section 66A of the WIA91 to the licensee for supply to the licensee’s eligible customers.

Introduction of water into the supply system

BW will take steps to enable the licensee to make the introduction of water into the supply system, and, having taken such steps, permit the introduction of water into its supply system, in accordance with section 66B of the WIA91 for the purposes of supply to the licensee’s eligible customers.

BW will take steps, and, having taken such steps, permit the introduction of water, as supplied by a secondary undertaker, into its supply system, in accordance with section 66C of the WIA91, for the purposes of supply to the licensee’s eligible customers. In some circumstances, such steps may include laying such pipes and constructing such other works as are necessary to connect the supply with the pipes in the area of the secondary undertaker.

1.4.2 Secondary water undertaker

BW will make available a supply of water to a licensee, for supply to the licensee’s eligible customers, within the area of appointment of another water undertaker in accordance with section 66C of the WIA91.

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1.5 Contact detailsThis section contains the contact details for all aspects of WSL

BW contact details for all WSL purposes are as follows:

Name: Bob Taylor, Managing Director

Address: Bournemouth Water,George Jessel House, Francis Avenue,Bournemouth, Dorset, BH11 8NX

Telephone: 01202 591111

Fax: 01202 597099

E-mail: economicregulation@bournemouthwater.co.uk

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Combined Supply Applications

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2 Combined supply application for access to the supply system

2.1 Process requirements2.1.1 Confidentiality agreements

This section defines the role of confidentiality agreements in the application process

A confidentiality agreement between BW and the licensee protects the interests of both parties, and their customers, by ensuring that all information provided or discussed in connection with WSL cannot be disclosed or misused beyond the purposes for which it was provided. Licence Condition R and WSL Standard Condition 2 impose equivalent obligations on BW and the licensee to treat all information provided as part of the WSL process as confidential.

BW therefore requires a licensee to sign a confidentiality agreement before any negotiation takes place following an application for access. BW would expect the licensee to share this view.

It is only necessary for BW and a licensee to sign one confidentiality agreement, at the time of the licensee’s first application. Subsequent applications can be covered by schedules to the first agreement.

Appendix A contains a specimen confidentiality agreement. This is also available on the BW website in Word format. Each party will retain a copy of the signed and dated confidentiality agreement.

2.1.2 Information requirements

This section includes an outline of the information required at each stage of the application process

General

Wholesale and combined supplies are significantly different, and require different levels of information from the licensee. The wholesale common code and contract set out standard information requirements. These can be found in Section 9 and Appendix F

The licensee is responsible for ensuring that information is correct and complete. BW will endeavour to notify the licensee if it considers that information is missing or incomplete.

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BW recommends an initial meeting with a new applicant at its Bournemouth office. This initial meeting will be held within about 10 days of receipt of an initial application, and one of the purposes is to establish and clarify the information requirements for the remainder of the application process.

Combined supply applications

Information required for initial application stage

type of licence held by licensee licensee’s contact details high-level technical information, including broad outlines of inlet and

outlet points and approximate annual volumes.

Information required for detailed application stage

customer’s written consent to the principle of switching supplier licensee’s declaration that its customer’s premises are eligible customer name customer premises information customer unique reference number customer contact details for emergencies expected start date for the supply supply duration estimated annual consumption, together with demand profiles where

relevant proportion of usage relating to non-household special service level requirements (if any) proposed inlet point to supply system, or sufficient information to identify

likely point of entry location of construction of facilities whether a connection to the supply system is required water quality assessment (see 2.3.1 and 2.4.1).

At this point BW will arrange a meeting with the licensee to clarify:

any issues arising from the application, and what specific further information is required to process the application.

The information BW will require in order to carry out a full feasibility study is case-specific but is likely to include the types of information listed in Appendix D. Applicants should consider Appendix D to be a guideline, and should appreciate that the information required to carry out a full feasibility study will vary with the circumstances involved.

Secondary supply applications

Information required for initial application stage

type of licence held by licensee licensee’s contact details high-level technical information, including broad outlines of location and

volumes required.

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Information required for detailed application stage

licensee’s declaration that its customer’s premises are eligible expected start date for the supply supply duration estimated annual volume, together with demand profiles where relevant proportion of usage relating to non-household special service level requirements (if any) proposed outlet point from supply system, or sufficient information to

identify likely outlet point identification of any requirements for pressure or similar matters.

At this point BW will arrange a meeting with the licensee to clarify:

any issues arising from the application, and what specific further information is required to process the application.

BW expects that the licensee and the primary undertaker will have a number of information requirements concerning the proposed secondary supply, and particularly relating to water quality.

2.1.3 Timescales

This section sets out the timescales for each stage of the application process

The outline timescales set out here represent the maximum expected elapsed time from the start of the application process. The timescales exclude any allowances for shortfalls in the required information, and for unforeseen or unavoidable delays in the technical and feasibility investigations..

Timescale for combined supply process

Time from initial application to:

meeting between parties 10 days BW feedback 40 days end of detailed assessment 90 days acceptance of agreement 120 days

Timescale for secondary supply application

The access code guidance envisages that a secondary supply application will take place simultaneously with the associated combined supply application to the primary undertaker.

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2.1.4 Application fees

This section contains information on application fees, including how fees will be raised and terms for payment, and on the position if an application is withdrawn

In accordance with Ofwat’s latest guidance on access codes (September 2011), BW cannot recover from a licensee any costs of processing an application for access, including any costs for feasibility studies.

2.1.5 Credit provisions and credit limits

This section sets out the position on credit provisions and credit checking

BW will treat the licensee as it would treat commercial large user customers.

As such, BW would not normally carry out credit checks on large user customers or on the licensee.

BW does not normally require its large user customers to provide security deposits, bonds, financial guarantees or advance payments in connection with their supply of water. BW will therefore not require the licensee to provide security deposits, bonds, financial guarantees or advance payments.

BW is entitled to claim interest and other charges under the Late Payment of Commercial Debts (Interest) Act 1998. This provision is included in the BW Charges Scheme and applies equally to commercial customers and licensees.

2.2 Confirming eligibilityThis section defines the eligibility requirements for WSL, including requirements on the type of premises and their boundaries, volume thresholds and the treatment of debt

Section 17A(3) WIA91 sets out the following three requirements that must be satisfied in relation to each of the premises supplied by a licensee:

the customer’s premises are not household premises; when the licensee first enters into an undertaking with a customer to give

the supply, the total quantity of water estimated to be supplied to the premises annually by the licensee is not less than 5 megalitres (the threshold requirement); and

the premises are not being supplied by another licensee (but may be supplied by a licensee and one or more water undertakers).

Further information can be found in Ofwat’s guidance on eligibility (see 1.2).

2.2.1 Responsibilities

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In all cases and for all aspects of eligibility, it is the licensee rather than the water undertaker which must ensure that the premises of a potential customer are eligible in accordance with Ofwat’s guidance on eligibility.

Unless doing so in pursuance of its licence, it is a criminal offence for a licensee to use a water undertaker’s supply system for the purpose of supplying water to any premises of a customer, or for a licensee to introduce water into a water undertaker’s supply system. It is therefore a criminal offence for a licensee to breach any of the eligibility requirements set out above.

In addition, any licensee that contravenes these requirements could face enforcement action by Ofwat under section 18 WIA91 and may incur financial penalties under section 22A WIA91. Alternatively, a licensee could face revocation of its licence in accordance with the Standard Conditions of Water Supply Licences.

A set of premises may change in such a way as to require the threshold to be satisfied a further time. For example, a customer may sell part of its premises so that the original premises is split and is occupied by different customers. Regarding the threshold requirement, as long as the requirement is met at the time the licensee first enters into the undertaking to supply a set of premises, and those premises do not change, those premises can continue to be supplied by the same licensee for the duration of the undertaking even if consumption falls below the threshold.

A licensee should seek its own legal advice if it is unsure whether a customer’s premises are eligible.

2.2.2 Boundary definition

The WIA91 does not define premises for the purpose of assessing eligibility. Premises can include buildings or land. Licensees can only supply customers at individual eligible premises. Each of the premises supplied must be eligible. Customers cannot aggregate consumption at more than one set of premises in order to achieve eligibility, although some groups of properties may constitute a single set of premises in certain circumstances.

There will be a single set of premises in the following circumstances:

the premises are located within a single boundary and a single customer occupies the premises and is liable for water bills in respect of those premises (single boundary premises);

the premises consist of co-located buildings, other similar structures and/or land which have adjoining boundaries or which are separated only by transport infrastructure and a single customer occupies the premises and is liable for water bills in respect of those premises (common occupation co-located premises); or

the premises consist of a single building or co-located, separately occupied buildings, other similar structures and/or land with all four of the following characteristics: they have a common landlord or managing agent in respect of the

totality of the premises; they have adjoining boundaries or are separated only by transport

infrastructure;

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they are served by a self-contained common water supply system that does not belong to a water undertaker; and

a single customer is liable for water bills in respect of the totality of the premises (common management co-located premises).

If premises meet the second and third criteria, the first criterion cannot be applied to any part of the premises as a means of reducing the area in order to bring the reduced premises within the eligibility requirements.

2.2.3 Household and non-household premises

Premises that satisfy the single set of premises eligibility requirement must also satisfy the requirements in section 17A(3)(a) WIA91 that the premises are not household premises.

Section 17C WIA91 defines household premises as those in which, or in any part of which, a person has his home. The fact that a person has his home in, or in part of, any premises does not mean that the premises are household premises unless the principal use of the premises is as a home. In its guidance on eligibility Ofwat sets out what it considers to be household and non-household premises for the purpose of the WSL regime.

2.2.4 Volume threshold

The threshold requirement is that, at the time the licensee first enters into an undertaking with a customer to supply the premises, the total quantity of water estimated to be supplied annually to the premises by the licensee pursuant to the undertaking is not less than 5 megalitres. The threshold requirement relates to the amount of water that is supplied by the licensee using one or more water undertakers’ supply systems. The amount of water that a customer receives by means of private supplies does not count towards assessing whether the threshold requirement is satisfied.

2.2.5 Supply arrangements for licensees

Section 17A WIA91 prohibits the supply of an eligible premises by more than one licensee. However, a premises may be supplied by a single licensee and one or more undertakers.

2.2.6 Attachment to the supply system

Customers can only be supplied by licensees if they are connected to the supply system. The supply system is defined in section 17B(5) WIA91. It can be summarised as any water mains and other pipes used for the purpose of conveying potable water from a water undertaker’s treatment works to customers’ premises, and any water mains and other pipes used to convey non-potable water from any source to premises that are not connected directly or indirectly to any water mains or pipes connected to those treatment works.

Section 17A(5) provides that the supplementary authorisation is an authorisation to the licensee to introduce water into a water undertaker’s supply system, by means of which any particular retail supply of water is to take place. We interpret this to mean

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that a physical link is required between the combined licensee’s introduction point and its customer’s premises.

2.2.7 Customers in debt

Outstanding debt is defined in Condition S and Standard Licence Condition 6 as charges in relation to water supplied to the premises of a customer, which have remained unpaid for 30 days or more after the date that the supplier has served notice on the customer demanding payment.

If there is outstanding debt and arrangements are not in place for the repayment of such debt, an objection to the customer transfer can be raised by the former supplier in accordance with the Customer Transfer Protocol (CTP). To allow the transfer to continue, it may be possible to allow the debt to be assigned to the new supplier. Such arrangements would need to be agreed between the new supplier, the customer and the former supplier.

Further information is available in Ofwat’s CTPhttp://www.ofwat.gov.uk/

2.3 Application process2.3.1 Combined supply arrangements

This section describes in detail the application process for a combined supply

Stage 1 – introduction and initial contact

Stage 1 may be envisaged as a clarification and orientation stage.

BW recommends an exploratory meeting with the licensee, which should assist the application process. The licensee should therefore complete and submit an application form for a combined supply, or simply contact BW and request a meeting. The application form for a combined supply can be found in Appendix E and also on the BW website in Word format. Contact details for the application process are in 1.5.

Appointed water companies and licensees should only proceed to the next stage of negotiations once the relevant parties have signed a mandatory confidentiality agreement.

Stage 2 – application stage

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Stage 2 is the stage of providing and understanding the outline information relevant to the application.

BW will set up a meeting with the licensee (see stage 1 above) to take place within about 10 working days of the initial contact. The purpose of the meeting is to understand and clarify both parties’ intentions. BW will start to process the application on receipt of the application form.

Information requirements for a combined supply are set out in 2.1.2. At the initial application stage outline information on proposed inlet and outlet points, and on volumes required, should be provided in addition to the licensee’s licence and contact details.

The application should include a signed consent form from each customer, stating that the named customer has expressed an interest in the licensee becoming its new supplier. Only customer consent forms dated no more than two (2) months before the licensee’s initial application, or otherwise verified by the customer as being in force as at the date of the licensee’s initial application, shall be accepted. This is to ensure that the customer is still interested in switching supplier.

The licensee is responsible for informing any third party sewerage provider who provides or will provide sewerage services, and the licensee may choose to do so at this stage. The licensee and the sewerage provider may need to hold separate discussions if appropriate.

At the end of the initial application stage, BW will set out in writing to, or arrange a meeting with the licensee to clarify:

any issues arising from the initial application, and what specific information is required for the next stage.

Feedback

At this point, BW will provide its preliminary assessment of the feasibility of the proposal to the licensee, including preliminary price and non-price terms. BW will also consider whether the proposed supply will constitute a strategic supply and discuss this matter with the licensee. If appropriate, BW will apply to Ofwat for strategic supply designation, however it is not obliged to do so and can defer an application until a later date.

Feasibility study and testing

The information BW will require in order to carry out its detailed feasibility study is case-specific, but is likely to include the types of information listed in Appendix D. Licensees should consider Appendix D to be a guideline, and should appreciate that the information required to carry out a feasibility study will vary with the circumstances involved.

BW will agree with the licensee the scope for any feasibility studies or tests before they are started. BW will provide the licensee with a copy of all findings, if the licensee requests them, and set out the decision on feasibility and the reasoning behind it before discussing what action is needed to take an application forward.

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Licensees should be aware that in any circumstance where a combined supply is proposed, access will depend on the proposal being technically feasible, within generally acceptable water supply practice, and in conformance with BW’s reasonable design and operational requirements.

It is possible that access for a combined supply may require system changes or reinforcements. BW will assess the impact of the proposed supply on a with-and-without basis, that is it will consider what system changes or reinforcements would be required, and when, if the proposal had not arisen, as well as calculating the need for such changes as a result of the proposal. In this manner it should be possible to identify whether any benefit accrues to the undertaker. The licensee will be charged only the additional cost of making such changes as a result of its proposals. The charge for any such change or reinforcement will be calculated in accordance with the requirements of section 66E WIA91.

If the licensee is proposing to introduce a supply from a new or external source, it should keep the DWI fully informed. BW will approach the DWI if there are any water quality issues arising from the application. BW will, and the licensee should, give due regard to any guidance given by DWI in respect of combined supplies.

BW will expect the licensee to keep it fully informed if any information that has previously been supplied has changed, or if additional relevant information becomes available. If BW considers that any changed or new information requires further investigation, it will advise the licensee as soon as possible.

If the application involves a secondary supply from another undertaker, BW as primary undertaker may request water quality information from the secondary undertaker.

BW will endeavour to complete an assessment of the application for a combined supply within 50 working days of receiving the required information from the licensee and other parties, such as the DWI and Environment Agency.

Once BW has carried out the necessary investigations in response to an application and reported the results, including confirming the feasibility of the licensee’s proposals (with any necessary modifications), it will make a firm offer of access (price and non-price terms) in writing to the licensee, within 10 working days. The offer will be subject to the execution (or modification in writing) by both parties of a formal written combined supply access agreement.

Stage 3 – negotiation stage

This stage covers contract negotiation.

The contract, which will comply with this Access Code and Ofwat’s Access Code Guidance, will include clauses dealing, amongst other things:

payment terms, including frequency arrangements for dealing with outstanding debt a service level agreement setting out the support services BW will provide

the licensee water quality issue.

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The terms offered by BW will be open for discussion for 15 days. Where a change is agreed the contract will be modified.

The final offer made will be open to the licensee to accept for a minimum of six (6) months, however BW may make an offer to another licensee in that time if requested to do so. BW may also vary an offer in the event of a material change of circumstance, in which case it will communicate this to the licensee.

Terms accepted/rejected

If the licensee accepts the terms (subject to execution by both parties of a formal written contract), BW will send the licensee a signed contract within 10 working days. The licensee should sign the contract and return it within 10 working days of receipt.

If, despite negotiations, the licensee and BW are unable to agree the period for which and/or the terms and conditions on which BW is to perform its duty under section 66B WIA91, the licensee may refer the matter to Ofwat for determination under section 66D(2) WIA91.

It is incumbent on both BW and licensees to complete detailed contract negotiations within 40 working days, unless otherwise agreed by both parties.

Role of the DWI

The Drinking Water Inspectorate (DWI) will need to be satisfied that the licensee is aware of, and understands, its regulatory duties and responsibilities in respect of drinking water quality at the initial licence application stage. Where a combined licensee intends to treat a source of water for potable supply, the treated water cannot be introduced into the public supply system until the DWI is satisfied that the treatment processes meet the relevant regulatory requirements and the works is being operated in a competent manner.

During access negotiations DWI will advise Ofwat as necessary on drinking water quality issues relating to the use of common carriage, particularly in respect of dispute resolution.

Overall, licensees will be subject to the same level of regulation as undertakers.

Role of EA

The Environment Agency has a duty to secure the proper use of water resources in England and Wales. It monitors water in the environment and issues abstraction licences to regulate who can take water from the environment and how much can be taken.

In most cases, applicants with a combined supply licence will require a water abstraction licence from the Environment Agency to take water from surface water or groundwater. Every new proposal to abstract or impound water undergoes extensive scrutiny and investigation before a decision is made to grant or refuse an abstraction

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licence. There is a need to ensure that water resources are safeguarded and that abstractions do not damage the environment.

Secondary supplies (under section 66C of the WIA91) are meant to encourage use of spare water, but the undertaker and the licensee may not be able to agree on how much water the undertaker has spare. In the absence of agreement, Ofwat may be asked to determine whether a supply under section 66C should be made, and if so the terms of that supply. In these instances, the Environment Agency will also play a role in advising Ofwat on whether the criteria for rejecting a proposal for a secondary supply under sections 66C(5) or (6) of the WIA91 are satisfied. Ofwat will then make a determination.

Role of the secondary undertaker (where applicable)

A licensee with a combined licence who has a customer in the area of a primary undertaker can request a secondary undertaker to provide a supply of water to enable that licensee to supply its customer’s premises using the primary water undertaker’s supply system.

If a licensee makes such a request the secondary undertaker is under a duty to take steps to enable the supply to be provided. Once those steps have been taken, the secondary supplier is under a duty to provide that supply under section 66C of WIA91. Section 66C provides exclusions for these duties under certain circumstances, which are described in 1.3.1.

Ofwat encourages potential secondary undertakers to consult the Environment Agency informally whenever they become aware of a possible secondary supply application.

2.3.2 Secondary supply arrangements

This section describes in detail the application process by a licensee for BW to provide a secondary supply

Spare water

The duty on a secondary water undertaker to provide a wholesale supply of water only applies if that water can properly be described as spare. If a secondary water undertaker is to offer any of its spare water to the licensee for the purposes of entering into a secondary supply arrangement, then the assessment of spare water must be clear.

When considering whether it has any spare water, BW will assess its headroom position in relation to the conditions under section 66C WIA91.

The difference between water available for use and demand is called available headroom. It takes different values for average and peak demand conditions. Target headroom is the amount of surplus water available over demand that a water undertaker needs to be able to continue to supply without restrictions on use, and to achieve its target Security of Supply index. This amount depends on the possible fluctuations in elements of the forecasts of supply and demand that could occur; for example through outages, pollution and variations in demand.

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Since an assessment of spare water will have to take into account any fluctuations in supply and demand, then the calculation of spare water will start with a calculation of the difference between target headroom and available headroom.

The consideration of spare water will generally take place as follows:

where the dry year target headroom is equal to or greater than the dry year available headroom, then there will be no spare water in that water resource zone (WRZ)

if the dry year target headroom is less than the dry year available headroom, then BW will consider its critical period obligations and the impact on its customers, in order to complete its assessment of whether it has any spare water.

BW will also need to take account of each of the following before deciding whether it has spare water available:

whether any of its water supply area is designated by the Secretary of State as water-stressed

the potential effects of abstractions necessary to make secondary supplies available on the local environment, such as low flow rivers.

The secondary supply arrangements must not put BW’s customers at a disadvantage. If, for example, as a consequence of making spare water available to a licensee, BW would have to impose restrictions on its customers, such as hosepipe bans, that would be unacceptable.

In general, the provision of spare water should not materially affect any drought measures or the security of supply index. If this is likely to happen, then water should not be considered as spare. Water undertakers will also need to consider future legislative changes and changes in policy towards issues such as metering, leakage and water efficiency.

Information gathering

BW is prepared to provide up-to-date assessments of where the spare water is likely to be available in response to queries. Licensees will want to find out about the overall balance of resources in water resources zones and, in particular, how much water is likely to be available. When asked to, BW will also write to the licensee explaining its answers and when and for how long water might be available. In addition, when asked, BW is prepared to provide information on existing cross-connections and their available capacity (if known). This will help parties to assess their likely availability for the purposes of providing a secondary supply.

When responding to queries about these issues, BW will refer to information in its current Water Resources Management Plan (WRMP). Ofwat does not expect water undertakers to divulge information from their WRMPs if this is considered to be commercial in confidence or security sensitive until the formal application has been made and a confidentiality agreement has been signed. However, they must be prepared to answer any queries from licensees fully.

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BW will also refer to drought plans to help it assess whether water may be considered as spare. Water undertakers are required to set out in their drought plans how they will continue to meet their duties to supply wholesome water during drought periods with as little recourse as possible to drought orders or drought permits. This information will help licensees to understand how the secondary supplies will be managed in a drought and to inform the management of their own supplies.

BW will also make available any information that it may have relating to the quality of the water source, to enable the licensee to identify potential water quality issues.

Where a licensee asks BW for information, BW will provide clear details and be prepared to discuss any issues that may need clarifying with the licensee. For instance, the parties may need to discuss general capacity or transmission issues.

BW will respond promptly to licensees’ enquiries about water availability. Responses will be based on up-to-date information to enable the licensee to consider whether or not it could move on to a formal application.

BW will aim to provide a general assessment of available water in its area within 15 working days of a request for general information. When answering queries, BW should be made aware about what options are available and whether any additional modelling may be required. BW will also explain how the assessment may be revised in the future, by listing the facts that will be need to be reviewed when more information about the proposal becomes available, and how assessments of spare water will be affected by future changes in the condition of the supply system, such as flow and pressure, to enable the licensee to assess the supply options.

Formal application

Stage 1 - initial contact

The licensee must inform both the primary and secondary water undertaker of its interest in entering into a secondary supply arrangement.

At this stage, the primary and secondary water undertakers must both explain to the licensee their processes for handling applications. BW will make its information requirements clear to the licensee and, where appropriate, to the other water undertaker within ten working days from first contact. In addition, all parties need to sign the relevant confidentiality agreements.

The licensee should provide the primary water undertaker with (as a minimum) the information on volumes and demands as set out in section 2.1.2. The licensee should also provide the secondary water undertaker with (as a minimum) the information on volumes, durations, and other hydraulic requirements as set out in section 2.1.2. It is important that sufficient information is available to determine likely exit and entry points from and to undertakers’ systems.

The licensee must provide clear contact details and notify the sewerage undertaker of its interest at this stage.

The DWI will need to be involved as appropriate at any stage of the procedure. DWI will review the water undertaker’s initial assessment report for any key water quality omissions at the start of the detailed application stage. Later in that stage, after the

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water undertaker’s investigations, DWI will assess compliance with the relevant regulatory requirements, identify any issues arising from its guidance on common carriage and review against industry best practice. DWI has requested that it be given between two and three months’ warning prior to its involvement in a combined application. Licensees are therefore encouraged to inform DWI as early as possible of a proposed secondary supply arrangement.

BW will also consult the EA whenever it becomes aware of a possible secondary supply application. In the event that the parties cannot agree on the potential secondary water undertaker’s availability of water, Ofwat must consult the EA before determining a case referred to it about the conditions under which secondary supply duties do not apply.

If a licensee has made an earlier successful application to the same water undertaker, both parties may agree to omit some of these stages. The timescales set out in this access code are intended as limits, but should not stop the procedure from being completed sooner where possible. Some applications may take longer to process (for example where technical information is required from other parties). In these circumstances, BW and the licensee might agree to stop the clock until the relevant information is received.

Stage 2 – outline application

The licensee needs to make:

an outline application to the primary water undertaker for access to its supply system; and

an outline application to the secondary water undertaker (BW) for a secondary supply.

An outline application from the licensee should include the information set out in section 2.1.2. With reference to customer consent information, BW will only accept customer consent forms that have been signed, or verified by the customer as in force, no more than two months prior to being submitted at the initial application stage.

Once the licensee has made the outline application, the three parties should agree to a tripartite meeting or a series of tripartite meetings, depending on the circumstances of the case. The first tripartite meeting should be held within 10 working days from the applications being made.

The tripartite meeting process

The secondary supply arrangements will need to be discussed over a series of tripartite meetings. The meetings should provide all parties with the opportunity to discuss the relevant issues. The timescale for completing the tripartite meeting process is 20 working days.

At the first tripartite meeting, parties should have the relevant documentation to enable them to discuss the following:

the licensee should confirm to the primary and secondary water undertaker what it requires in order to provide the specified levels of

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service to its potential customers, confirm to the primary and secondary water undertaker its exit and entry point proposals, and compile the relevant information to inform the sewerage undertaker

the primary water undertaker should outline the specifications for introducing the secondary supply into its system (including quality and compatibility issues and physical arrangements), outline the steps it needs to take to connect the secondary water undertaker’s supply system to its own supply system (including a discussion of exit and entry points), explain the likely infrastructure requirements, discuss initial operational, quality or hydraulic issues, and consider whether the proposed supply is likely to constitute a strategic supply

the secondary water undertaker should provide an offer to the licensee outlining the volume of water that it is able to provide at particular locations, the flow and pressure of the water, the reliability of the supply and the water quality, and discuss the exit and entry point proposals, explain the likely infrastructure requirements, and agree the specifications that it will meet.

Both the primary and secondary water undertakers will comment on the licensee’s applications and specify any further information that they need in order to complete the application process. They should, as far as possible, confirm the basic feasibility of the licensee’s proposal and also explain the circumstances that might lead to an offer being amended so that the licensee understands how and why an offer may change.

By the end of the first tripartite meeting, the licensee should receive preliminary price and non-price terms from BW as the secondary undertaker, with an explanation of how and why these estimates may be revised later. Price or cost terms offered at the end of the first meeting will not be binding, but should be as accurate as possible to enable the licensee to plan for supplying its prospective customers.

Parties should also have discussed and agreed an ongoing programme of tripartite meetings. In some cases, parties may decide that a bipartite meeting only is necessary.

BW may find that a feasibility study at the detailed application stage is not necessary if the information provided at the outline application stage is sufficient. This will help prevent any further costs being incurred from unnecessary feasibility studies at a later stage. If BW believes that a licensee's proposal is not feasible at this stage, it should set out the reasons in writing to the licensee. If the licensee does not agree with BW’s reasons, it can refer the matter to be resolved by Ofwat.

Stage 3 - detailed application

The licensee should now make detailed applications:

to the primary water undertaker for access to its supply system; and to the secondary water undertaker (BW) for a secondary supply.

The licensee should only make a detailed application in relation to the single option that is its preferred arrangement, rather than making applications for different options. The detailed applications should enable both the primary and secondary water undertakers to carry out any feasibility studies and testing that may be needed

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to determine proposed terms for access. However, feasibility studies for secondary supplies should not be undertaken until the primary water undertaker has agreed, in principle, to allow the licensee and the secondary water undertaker access to its supply systems.

BW will aim to complete full assessments of secondary supply applications within 50 working days of receiving the required information from the licensee. It may also be necessary to ask for input from the DWI, EA, or other parties.

Further information exchange and feasibility testing

The licensee will need to confirm any information that it has already provided and, where necessary, provide the primary and secondary water undertakers with further details. The information that the licensee may need to provide will include the following:

any additional supply and demand information that may be requested details of any supply or demand management contingency arrangements,

including how the supplies will be managed during a drought relevant proposals relating to obligations, liabilities, insurance, and

indemnities evidence for the primary water undertaker to demonstrate the licensee’s

systems for informing customers of emergencies.

The secondary water undertaker and primary water undertaker will need to exchange the following information:

water quality assessments, including the predicted quality of water entering the system

history of contamination of the raw water source, where relevant the level of treatment proposed, with particular attention to disinfection

practices and any additional treatment requirements such as plumbosolvency control and fluoridation

operational requirements the safeguards and procedures in the event of treatment failure the water quality requirements of potential customers proposals for monitoring to ensure compliance with water quality

regulations hydraulic requirements emergency contacts.

The licensee should keep both water undertakers fully informed if any of the information supplied changes, or if further relevant information becomes available. If the water undertakers consider that any changes require further investigation they will inform the licensee as soon as possible and may modify the price or non-price terms previously quoted.

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The parties will also be able to discuss issues such as provision of water for fire fighting and leakage on the primary water undertaker’s supply system. The approach to these issues is covered in section 4.1.1.

Any feedback on the detailed application should include preliminary price and non-price terms proposed by the water undertakers that will not be binding, but should be as accurate as possible and should provide the licensee with sufficient certainty to formulate indicative proposals to supply prospective customers.

After the relevant information has been exchanged, the parties should enter into the feasibility study stage. The parties should agree the scope of any feasibility studies before they are started.

After the water undertakers have carried out the necessary investigations and reported the results, including and confirming feasibility of the licensee’s proposals with any necessary modifications, they should make a firm offer of price and non-price terms. These offers should be made, in writing, to the licensee within 10 working days of completing the feasibility study. These offers will be subject to all parties signing the access agreement or agreements.

Cost recovery

Licensees should be aware that:

primary and secondary water undertakers cannot recover from licensees any costs that are related to discussing, negotiating and agreeing terms and conditions of an agreement, including the costs of feasibility studies, modelling, answering queries and processing applications

primary water undertakers can recover the costs of permitting the introduction of a secondary supply to its system, including (where appropriate) the costs of work such as installing pipes to the point of connection, balancing hydraulic requirements or making the secondary supply compatible with the primary water undertaker's supply

secondary water undertakers can recover the costs of providing a secondary supply, including (where appropriate) costs such as installing new infrastructure for the purposes of facilitating the secondary supply arrangement, or meeting the primary water undertaker's specifications

primary and secondary water undertakers will also be able to recover an access charge from the licensee, and further details are given in section 9.

Contractual arrangements

In the case of a secondary supply, the contractual relationships cover two arrangements:

the agreement between the licensee and the primary water undertaker covers access to the primary water undertaker’s supply system

the agreement between the licensee and the secondary water undertaker (BW) covers the arrangements for a secondary supply.

Stage 4 - detailed contract negotiations

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Ofwat expects water undertakers and licensees to complete detailed contract negotiations within 40 working days. Details of the likely contractual requirements are contained in section 8. If either water undertaker or the licensee asks for a change in the terms and conditions, then they should explain the reasons for the change to the other parties. Where any changes are requested, all parties involved should aim to agree these within 10 working days and, in any case, to complete negotiations within the 130 day overall timescale set out in the figure 4.

If the licensee accepts the terms, the primary and secondary water undertakers will send the necessary contracts, within 10 working days. The licensee should sign and return these within 10 working days. Once the final offers have been made the licensee should notify its customers of the intended change of supplier and expected transfer date. Once an agreement has been made, the process moves to the Customer Transfer Protocol (see section 3).

2.3.3 Provision of information to the sewerage undertaker

This section clarifies responsibilities for keeping the sewerage undertaker informed

The licensee is responsible for maintaining communication with, and providing information to, sewerage undertakers in respect of both wholesale and combined applications.

BW will therefore expect a licensee to administer this function without its involvement, unless otherwise agreed on a case-specific basis.

2.3.4 Objections and rejection process

This section identifies circumstances that could result in an objection to, or rejection of, an application for access

BW, or another relevant party involved in the process (for example the DWI), may, at any stage of the application process, discover a reason or reasons why the application may not progress further, and will at that stage raise an objection.

The basis of the objection may arise from any of the statutory conditions laid out in sections 66A to 66C of WIA91. Alternatively it may arise from another reason, examples of which are listed below:

refusal or inability by the licensee to provide necessary information provision of incorrect or insufficient information by the licensee unacceptable water quality implications BW or an earlier licensee considers that the customer’s premises are not

eligible an application by another licensee to supply the customer has been

accepted national security reasons concerns about source risk assessment.

In the first instance the objector should provide, in writing to the applicant, full reasons for the objection. This must be done as soon as the objector becomes

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aware of the problem. The relevant parties should endeavour to resolve the problem where possible.

If the objector is BW, it will comply with a request by the applicant for a meeting to discuss the objection. BW will endeavour to work towards a solution that will enable the application to progress.

Application process – arbitration and disputes resolution

In the event that an objection is raised that relates to issues of eligibility or the terms and conditions of an access agreement, and a solution cannot be reached by the licensee and the objector, the licensee may ask Ofwat to determine an outcome.

2.4 Access criteriaThis section contains information on the quality of water the licensee is expected to achieve in order to gain access to the supply system, and information relating to input volumes and pressures

2.4.1 Water quality input specification

Water quality inputs

It is of paramount importance that the introduction of water by a licensee does not detrimentally affect the quality of water supplied to customers. Any such detrimental effect will almost certainly give rise to a refusal of access.

Appendix C contains more detailed information with reference to water quality.

The assessment of water quality will be a major factor in the feasibility study for a combined supply. The feasibility study will include a detailed assessment of whether water entering the distribution network will be of sufficient quality to enable BW to meet its obligations under the Water Supply (Water Quality) Regulations at customers’ taps. Licensees must be prepared to provide adequate and sufficient water quality sample results to enable this assessment to be made, including an assessment of the variability in quality. Licensees must provide details of the quality of both raw and treated water (if applicable) at the application stage.

It is not practical to provide a generalised requirement for the acceptability of water quality. The assessment of water quality will depend on the circumstances of the application. For example, any change to the direction of flow may have an impact on the quality of water delivered, and the mixing of different waters may also need to be taken into account.

In general terms, the licensee should expect that BW will require that water from the licensee’s source will be treated to no lesser standard and quality as BW treats water for input to that part of the network. This applies in particular to the disinfection process, where taste and odour at customers’ taps may be affected. For the information of licensees, BW uses chloramination as its disinfection process, and this will be taken into account in the assessment of compatibility of water quality.

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BW and licensees will need to have regard to the DWI’s guidance on common carriage and the maintenance of drinking water quality and any updates that the DWI might produce.

BW and licensees should also comply with the DWI’s advice when resolving disputes between them. In addition if after any network modelling exercises, they remain in doubt about the supply on water quality issues, they should also consult the DWI.

Water quality parameters

For an existing source, the licensee should be prepared to provide water quality data from all relevant sample points upstream of the proposed inlet point in accordance with the Water Supply (Water Quality) Regulations. Appendix C provides further details. The licensee should provide the data for a complete year (twelve months).

In the case of a new source, regulation 15 of the Water Supply (Water Quality) Regulations specifies minimum requirements for sampling new sources or those which have not been used for six months or more. Further details are contained in Appendix C.

If the quality of water in distribution changes significantly after a scheme goes ‘live’, licensees must change their inputs to ensure compatibility. The licensee should bear any associated costs. BW will tell the licensee during the application procedure about known forthcoming changes to operational standards that might affect compatibility. If BW does not communicate that information properly and, as a result, the licensee incurs unnecessary costs, BW will bear the cost.

Special circumstances relating to water quality standards

Further information on water quality issues arising from operation and maintenance of the supply system is contained in 5.1.2.

Output from feasibility study

The outcome of the water quality part of the feasibility study will normally be:

either a specific requirement for water quality for the licensee’s supply, expressed as a set of quality parameters and their prescribed concentrations or limits

or an objection by BW to the application on the grounds of unacceptable water quality implications.

2.4.2 Water flow and pressure

It is possible that the licensee’s proposed inputs may create potential flow or pressure issues within the supply system. These will be case-specific and will be discussed with the licensee. In such a case, the licensee may be requested to provide further relevant data. BW will follow any guidance issued by Ofwat on network hydraulic balancing, and, in general, will aim to accommodate any input in a manner which gives the best overall efficiency for the benefit of both BW and the licensee (and hence customers). BW will carry out an analysis of the network, where

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it is potentially affected by new inputs, to establish the best operating regime. BW will keep the licensee fully informed during such work and will discuss the results before setting any operational constraints. This will include a full appraisal of the use of storage in the local system, and any impact on pumping efficiency.

In accordance with section 17A(5) of WIA91 and with Ofwat’s access code guidance, a combined supply allows the licensee to introduce water into a supply system by means of which the customer is to be supplied. Therefore, a physical link is required between the licensee’s point of entry to the supply system and the licensee’s customer. The feasibility study will identify:

whether such a link currently exists whether BW can reconfigure the use of its sources and network to

facilitate a supply by displacement whether the existing pipework is adequate or whether network

reinforcement is necessary.

2.4.3 Water quality sampling and monitoring

BW will need to be satisfied that the licensee’s regulatory sampling and monitoring proposals, including laboratory accreditation, are in place before access is granted. In general terms these will be of a similar standard to those required of BW’s own operations. The sampling and analysis requirements for water entering the network from a treatment works are set out in the Water Supply (Water Quality) Regulations, and guidance on the application of the regulations has been issued by the DWI (see Appendix C). BW will discuss the requirements for operational sampling so that both parties may be satisfied that risks are to be managed appropriately. It is not possible to be prescriptive about operational monitoring until the specific source of water, and its characteristics and variability, are known.

BW is not in a position to provide sampling, monitoring or laboratory services to the licensee.

It is possible that BW may have to suspend the licensee’s inputs, although it is envisaged that this would only be for the most severe reasons such as water treatment failure or a burst immediately downstream of the point of entry. BW will endeavour to give notice to the licensee if it is possible to do so.

2.4.4 Volume measurement

The requirements for inlet point metering and flow balancing are set out in 4.2 and 4.3.

2.4.5 Input of water to the network

For the avoidance of doubt, BW will not normally consider any request for access to any of its treatment works.

BW has an established policy whereby no water is supplied to customers direct from a treatment works without adequate buffer storage between the final or critical measurement point of the works and customers. This is to ensure that there are opportunities to intervene, in the event of a deviation in drinking water quality from acceptable standards, before customers are put at risk of receiving water which may

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be considered unwholesome or unfit for human consumption. BW will normally expect the same policy to apply to water supplied by a licensee.

2.4.6 Note on fluoridation

BW is not required to add fluoride to its drinking water supply. There is equally no such requirement on the licensee.

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3 Customer transfer protocolFor detailed information refer to the Customer Transfer Protocol (CTP) available on Ofwat’s website http://www.ofwat.gov.uk

3.1 PrinciplesStandard Licence Condition (SLC) 6 and Condition S of the Instrument of Appointment require licensees and water undertakers, respectively, to comply with Ofwat’s CTP. Relevant sections of the WIA91 (as amended by the WA03), Condition R and SLC 4 also place a duty on water undertakers and licensees to exchange certain information.

Ofwat has developed the CTP with the assistance of customer representatives, potential licensees and water undertakers. The CTP provides a clear, simple and standardised process for the timely and efficient transfer of customers between:

any water undertaker and any licensee; and any two licensees.

3.2 Rules of behaviourAll licensees and water undertakers are required to comply with the rules of behaviour of the CTP, as specified in the CTP as issued by Ofwat and as amended from time to time.

3.3 Data transferThe CTP specifies the data flows, the data items required within each data flow and the timescales that apply for transmission of those data flows. All licensees and water undertakers must comply with those requirements.

All licensees and water undertakers must give details of the name and contact details (which must include an e-mail address) of the person to whom licensees and water undertakers should send all CTP data flows in the data format prescribed by the CTP. Details for BW are as follows:

Company: Bournemouth Water

Contact name: Tracey Legg

E-mail: economicregulation@Bournemouthwater.co.uk

Telephone: 01202 591111

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3.4 Registration and operational processesAll water undertakers and licensees must follow the operational processes in the CTP for effective customer transfer and the resolution of disputes on transfer.

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4 Control and balancing of supply system4.1 Supply system managementBW does not operate a non-potable supply system. The contents of this section (and of the entire access code) therefore refer wholly to the potable supply system.

4.1.1 Unbilled water

This section defines the processes to address water lost from the supply system, unauthorised use and water used for fire-fighting purposes

Leakage

The tariffs on which BW customers are charged, and on which access prices are based, include the costs of water lost through leaks and the costs of managing leakage. Therefore, a combined licensee will be required to provide only the same quantity of water that its customers use, as measured by those customers’ charging meters. All losses in the system will continue to be the responsibility of BW.

Unauthorised use of water

In the same manner as for leakage, the responsibility for and costs associated with unauthorised use of water from the supply system remain with BW.

Water for fire-fighting

Also in line with the above, the costs of and management of operations to provide water for fire-fighting from the network are included in the tariffs and will remain the responsibility of BW. The day-to-day operation of hydrants by fire authorities does not normally have an undue impact on the operation of the network, although from time to time (especially in areas served by small diameter mains), demands for fire-fighting cause low pressures, requiring intervention by BW to minimise the impact on customer service. BW maintains good liaison with fire authorities to ensure, as far as possible, that events that may have significant impact are notified such that BW can react and maintain the best possible service to all customers. Customers of licensees will be treated no differently from BW’s own customers in this regard.

BW cannot charge for water used for fire-fighting, or for related purposes including fire training and testing of fire-fighting apparatus, provided that it is aware of such use. The licensee will therefore need to set up procedures to deduct such water use (if any) from the records of volumes of water supplied to its customers. These procedures should be auditable. Licensees should be aware that the private pipe network at the premises of some large users may be configured with fire hydrants supplied with water that has passed through the charging meter. BW would not be aware of any use for fire purposes unless a system is in place to record such use.

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4.1.2 Drought and Water Resources Management Plans

This section contains details of the information required from licensees to prepare or revise drought plans and water resources plans

BW will retain full responsibility for the preparation and updating of both Drought Plans and Water Resources Management Plans. BW expects licensees to provide the appropriate data upon request, such that it can comply with the plan timetables set out by the regulators. The types of information required are described below.

Drought planning

BW will expect a licensee to prepare an outline plan, including details of what actions the licensee would take in the event of drought-related problems such as reductions in yield or poor water quality. BW would expect to integrate such plans with its own published drought plan so that an overall approach may be taken to managing operations in a drought. Licensees’ outline plans should be prepared in accordance with any guidance issued by the Environment Agency.

Depending on the nature of a particular drought, it may be possible for BW to support a licensee’s output from its own sources, but BW will not support a source on an ongoing regular basis where the yield has been overestimated.

Water resources planning

BW requires a licensee to provide the necessary information such that an overall water resources plan for the supply system can be prepared in accordance with the guidance issued by the Environment Agency from time to time. For a combined or secondary supply, BW will expect a thorough assessment of the reliability of any source. Where this is a new source, it is the responsibility of the licensee to gather sufficient data to enable sound predictions to be made of future performance. In the absence of historical data, a cautious assessment of the reliable yield is appropriate until sufficient history is known. The reliability of a source should include an assessment based on return periods.

A licensee’s water resources planning information should be compiled following the EA’s current guidelines and should include at least:

customers’ forecast demands for at least the length of the supply contract between the customer and the licensee

an assessment of the reliable yield of any source, including details of the methodologies used to assess yield

an allowance for outages if appropriate a description of how future demands will be met.

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4.1.3 Telemetry requirements for supply system control

This section addresses telemetry requirements and system compatibility issues, including those associated with emergency procedures

BW requires that all inlet point meters must be, and outlet point bulk meters will normally be, connected to the BW telemetry system. Further details on metering may be found in section 4.2.

The BW company-wide telemetry system is essential for the monitoring and control of assets, and for the monitoring of certain aspects of network performance. If required, BW can make available to the licensee the relevant data from its telemetry system. BW can also provide, if required, full round-the-clock monitoring of the licensee’s assets at its control centre. The charges for such services can only be case-specific, and will be negotiated as part of the access agreement, but BW will charge only the reasonable additional costs that it incurs.

Licensees should be aware that BW will retain full operational control of the supply system, including the management of emergencies and incidents. This may require, in specific circumstances,that the licensee’s input should be capable of being controlled remotely from the BW control room.

4.1.4 Secondary connections

This section deals with preventing secondary connections after access has been granted

In this context, a secondary connection is a new or additional connection to the supply system, made by the licensee. Secondary connections cannot be made unless authorised in advance by BW, but such authorisation will not be unreasonably withheld. This provision is made for the purposes of protecting the supply system, and breach of it will be sufficient grounds to terminate the access agreement.

Any authorised secondary connection will be made at the licensee’s cost.

4.1.5 Supply system maps and plans

This section defines the processes for sharing maps and plans

BW holds comprehensive maps of its area of supply, together with digital records of the water supply infrastructure. BW will provide all the relevant details of the positions and dimensions of its infrastructure which a combined licensee requires in order to assess the works necessary to access the BW system.

BW will expect the licensee to provide as-built records of its assets relevant to the particular access agreement.

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4.1.6 Point of entry controls and failure modes

This section addresses issues to do with sampling points, interface controls and automatic plant shutdown

BW expects the licensee to:

provide for a water quality sampling point immediately upstream of the inlet point

take the necessary samples in accordance with the Water Supply (Water Quality) Regulations, as further described in Appendix C

provide the results of analysis of those samples.

In the event that a sample parameter falls outside the acceptable range as included in the access agreement, the licensee will need to contact BW and the resultant action agreed by both parties.

As described in 4.1.3, the access agreement may provide for the licensee’s input being controllable remotely from the BW control room. Isolation and shutdown procedures will be agreed by negotiation.

The licensee should be aware that it is ultimately the licensee’s responsibility to ensure that water is not introduced to the supply system that causes the Water Supply (Water Quality) Regulations to be breached at the customer’s tap.

The licensee should be aware that BW will require the licensee to provide information for use in its Water Safety Plan.

The licensee should comply with the appointed water company’s monitoring requirements to ensure that the safe and efficient management of the supply system is maintained. It may be appropriate for the parties to link their telemetry to enable the appointed water company to monitor on the licensee’s behalf. Where this is not appropriate the licensee should provide information as set out in the access code, which might fall into the following categories for combined supplies:

daily monitoring information; planned maintenance/interruption arrangements; ongoing system balancing; emergencies and incident management; metering information; water quality data as appropriate, including contamination issues; levels of service feedback from the customer; and notice of changes in operation or water quality at the licensee’s plant and

any failures or out of specification performance.

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4.2 Metering services4.2.1 Meter asset management

This section includes clarification of metering requirements, and responsibilities for ownership, installation and maintenance of input and output meters

General position on metering

In the case of any input of water to the BW supply system, either directly from a licensee’s source and treatment works, or via a secondary undertaker’s supply system, BW requires that the volume of water input to its system must be recorded by meter. BW also requires that the volume of water leaving its system, either to supply eligible customers or to enter another water undertaker’s supply system, must be metered. For existing customers who are eligible, this latter requirement may already be fulfilled by customer meters used for charging purposes.

The capital, operating and maintenance costs of any bulk metering required as a result of a combined supply will be borne by the licensee (unless indicated otherwise below).

Inlet point metering

A meter must be fitted immediately upstream of the inlet point to the supply system. The meter will be to BW’s specification, but will be provided, installed and maintained by the licensee. A licensee may obtain metering installation services from a third party, but if a licensee contracts BW to fit such a meter then BW will charge for the installation at cost to the licensee.

The inlet point meter must be connected to the BW telemetry and data-gathering system, for the collection of real-time flow patterns and integrated volumes passed. The meter may additionally be connected to the licensee’s own telemetry and data gathering systems.

It is important for the management of the supply system that BW staff can ascertain (at any time and without any doubt) whether water is flowing into the system and at what rate, and that there are permanent records of flows available in the event of an incident.

Outlet point metering

A meter must be fitted immediately at the outlet point from the supply system. The meter will be to BW’s specification. Depending on the configuration of the specific supply, the outlet point meter may be the meter used to charge the customer. If a separate outlet point (non-charging) meter is required, for example in the case of a secondary supply to another water undertaker’s supply system, it will normally be installed by BW and will remain BW’s property. BW will charge for the installation at cost to the licensee.

In the case of a secondary supply, the ownership of the outlet point meter between the primary and secondary undertaker might best be determined by its location. BW

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will require that data from any outlet point meter should be collected through its telemetry system in order to record real-time flow patterns and volumes.

Customer metering

It is for the licensee to decide how to base charges to its customers. In the case of a connection to an existing eligible premises, it is likely that a suitable charging meter will already be present.

Most eligible customers are already metered, in which case BW will be responsible for ongoing maintenance of the meter (and the associated cost). In the case of an eligible customer where there is no existing meter, BW will, where practical and economic to do so, install a meter of the type it normally uses for supplying customers, at no cost to the licensee.

Meter maintenance

The owner of the inlet point meter will be responsible for its maintenance. If, for the purposes of maintaining the meter, any meter bypass is opened to keep the customer supplied, then an estimate of the volume through the bypass will be agreed in advance by BW and the licensee.

BW will maintain all meters which it owns at any exit point (including supplies to customers). The costs of maintaining exit point meters will be borne by the licensee, unless they are charging meters in which case the costs will be borne by BW. If, for the purposes of maintaining the meter, any meter bypass is opened to keep the customer supplied, then an estimate of the volume through the bypass will be agreed in advance by BW and the licensee.

In the event of any relevant meter failing to read, the parties will estimate and agree the relevant quantities.

Meter technologies available

Bulk metering

The technology available for input metering on a combined supply, or for the measurement of bulk quantities in the case of a secondary supply, will depend on the circumstances and location but could include the following:

magnetic flow meter – an accurate meter able to measure a wide range of flows continuously and transmit into telemetry systems or store data locally. It creates very little head loss. Many require a mains power supply, although models are available which operate on long life batteries.

differential head flow meter (such as an orifice plate, pitot tube or venturi device) - not as popular now as magnetic flow meters because the accuracy, while adequate in most cases, is generally lower. Such meters usually require a mains power supply, measure flow continuously and can transmit into telemetry, but create more head loss than magnetic meter.

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insertion magnetic or turbine meter – can be installed in water mains without a supply interruption, and measure continuously but with lower accuracy and subject to site-specific errors.

turbine mechanical meter – historically commonly used in networks for leakage monitoring purposes, and sometimes for large customer charging purposes. It involves some head loss, which has to be traded against accuracy in some applications because the detection of low velocities is not as good as in magnetic meters.

doppler and ultrasound – various types of meter are available which use sound velocity across a flowing fluid in a pipe to derive the bulk flow. Models are available which clamp to the outside of a pipe, and this type of meter normally requires a mains power supply.

This is not an exhaustive list, and BW will consider other types of technology or product, provided that there is sufficient evidence of an adequate degree of reliability and accuracy over the range of flows to be measured. BW’s normal preference is for magnetic flow meters where telemetry is required.

Customer metering

Customer meters provide the mechanism for establishing use and hence charges to customers. Customers eligible for competition would normally currently be metered using a mechanical meter which complies with the accuracy requirements laid down in legislation. Such meters usually collect total flows only, recorded on a mechanical counter. Most can now accommodate a data logger which can store totals at intervals which depend on the use for which the data is being recorded. In this way flow patterns can be derived. Loggers usually operate on sealed-for-life batteries, and can be obtained with a facility for downloading the stored data by SMS message over a cellular telephone system.

4.2.2 Meter calibration, verification and replacement

This section identifies responsibilities for the calibration, verification and replacement of meters

BW will be responsible for calibration, verification and replacement of all meters which it owns, and will carry out such duties to agreed frequencies and using techniques appropriate to the type of meter.

Any meters provided and installed by the licensee must be maintained in accordance with good practice and the manufacturer’s recommendations. BW will require evidence of calibration and accuracy.

BW will verify the accuracy of any meter which it owns. BW does not operate an in-house meter-testing facility, but contracts the work to an external organisation. In the case of a licensee’s meter, BW will arrange for the testing of the meter at the licensee’s request, but if in the event it is found to be operating within acceptable tolerances then a charge will be payable. Meter-testing charges will be payable either by BW or by the licensee, as set out here. This policy is applied to all customers.

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4.2.3 Meter reading and meter reading verification

This section clarifies the duties and responsibilities of undertakers and licensees in connection with the reading of meters, the exchange of meter readings, disputed readings and the provision of readings to sewerage undertakers

The licensee will be responsible for reading and recording the flows through inlet point meters (even though such meters will be connected to BW’s telemetry system). These readings, which may be manual or electronic, will be used for the key purposes of:

charges made to the licensee by BW flow balancing and reconciliation.

The frequency and format of exchanging meter flow records will be agreed on a case-by-case basis.

In the event that either party disputes a bulk meter reading, that party should contact the other. Both parties will seek to reach an acceptable outcome by discussion.

The licensee will need to make arrangements directly with the sewerage undertaker for the purposes of meter reading and billing for sewerage and trade effluent services.

The licensee will be responsible for reading any meters that it needs to read for purposes such as charging its customers.

In the case of bulk outlet point meters owned by BW, it will be responsible for reading and recording the flows. The frequency and format of exchanging meter flow records will be agreed on a case-by-case basis.

In the case of an outlet point bulk meter which also provides for the metering of flow into another undertaker’s system, the parties will agree responsibilities for ownership and data collection.

4.3 Supply system balancing4.3.1 Strategic balancing

This section defines how the undertaker needs to balance the supply system, including the assessment of water resources, the information required from licensees, and requirements associated with strategic supplies, back-up supplies, and the interim duty to supply

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Annual supply planning

BW is required to submit an annual review of water resources as part of its regulatory requirements. The type of information included is similar to that described in 4.1.2 above. BW expects the licensee to provide such information relevant to the licensee’s supply promptly on receipt of the regulatory guidelines for that year.

Use of strategic supplies

Under sections 66G and 66H of WIA91 Ofwat has the power to determine whether a combined or secondary supply constitutes a strategic supply. A water undertaker may request Ofwat to make such a determination. The introduction of a combined or secondary supply by a licensee is a strategic supply if, without that introduction, there is a substantial risk that the undertaker would be unable to

maintain supplies to its own customers and supply that licensee’s customers with water for domestic purposes.

With a strategic supply designation, if a licensee fails (but not the licensee’s source of water) then the licensee will be subject to special administration procedures which would require that the supply is continued. BW does not currently envisage that it would need immediate access to the licensee’s source under such circumstances, but it recognises the significance of the provision for strategic supplies in the interests of reassurance for customers. The designation of a supply as strategic also reduces the need for an undertaker to duplicate resources in case the licensee fails, which would be an inefficient use of water resources.

The special administration procedures under a strategic supply designation would require that the relevant assets would be operated and disposed of in a manner designed to continue the supply. This may give rise to commercial difficulties for the licensee’s business, and the licensee needs to be aware of this issue in the course of any discussions with BW about strategic supplies.

An application for designation as a strategic supply can be made at any time, and does not have to take place when the relevant supply is first introduced. If, for instance, the undertaker’s supply or resources position were to change such that it considers it would need to use the failed licensee’s source, it can ask for designation at that time.

Ofwat has prepared a non-statutory guidance document on strategic supplies, which contains further details on the subject and which may be found on its website (see 1.2).

Back-up supplies

It is probable, but not certain, that BW can make back-up supplies should a licensee’s arrangements fail. Back-up supplies are optional for a licensee and are not a mandatory duty for the undertaker. Back-up supplies, if required by a licensee, therefore need to be negotiated as part of the access agreement. They require the undertaker to maintain additional capacity in its system, the cost of which will be

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specific to the licensee’s precise requirements. Such cost would be reflected in the agreed access price.

BW will normally expect that, in the event of a licensee’s arrangements failing, the licensee’s customers will apply to BW for a new supply under sections 52 or 55 of WIA91. Until those new arrangements are in place, BW is under an interim duty to supply (see below).

Interim duty to supply

Section 63AC of WIA91 provides that if a licensee ceases to supply any premises with water, and if the customer has not intended the supply to cease and has not made any alternative supply arrangements, then BW is under an interim duty to continue that supply to those premises.

The interim duty to supply applies until

either a new supply is made under sections 52 or 55 of WIA91 or BW serves a notice on the customer that the supply is to be

discontinued, which notice must not be served until 3 months after the cessation.

The interim duty to supply does not apply if, by doing so, it would put at risk BW’s existing supply obligations or would incur unreasonable expenditure. In such a case BW can apply for a strategic supply designation (see above).

The customer will be charged at the standard BW published tariffs for any supplies made in accordance with this provision.

Interruptible supplies

BW does not operate an interruptible tariff option.

4.3.2 Flow balancing and reconciliation processes

This section defines the requirements around forecast and actual usage, the associated information needed from licensees, and how imbalances will be managed

As a necessary part of the information requirements leading up to an access agreement, the pattern of demand from each individual customer of a licensee must be established. The main features of interest are monthly profiles, together with seasonal and diurnal variations. If changes in the annual volume of use are anticipated, demand forecasts should be estimated for the duration of the customer-specific access agreement. In the case of any input of water into the supply system, either directly from a source or via a secondary supply, it is necessary to establish demands and monitor inputs and outputs for the purposes of charging and of maintaining a balance in the system.

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Forecasts of customer use

The pattern of demand from each individual customer of a licensee must be established. The main features of interest are monthly profiles, together with seasonal and diurnal variations. If changes in the annual volume of use are anticipated, demand forecasts should be estimated for the duration of the customer-specific access agreement.

For new customers only, such forecasts will be used to determine whether any system improvements are needed before the supply can commence.

Flow balancing for charging purposes

Over an agreed period the inputs to and outputs from the supply system should balance to within an agreed tolerance. BW would not wish to impose unnecessarily stringent standards for balancing, but expects that, over time, a licensee should supply the same quantity of water as used by its customers (unless there is an agreement for BW to top up the supply). For the avoidance of doubt and as set out in 4.1.1, the licensee will not be required to input water to support any operational needs within the system, such as fire-fighting, leakage or unauthorised use.

Flow balancing for operational purposes

Requirements for balancing the network will depend on the location and scale of any inputs and outputs relative to the size of the hydraulic zone and its flexibility in operation. There are several considerations:

pressure management - in some situations it is possible that inputs may need to match demand from a licensee’s customers within an agreed profile in order to prevent over- or under-pressurisation of the system. Such instances should be identified during the hydraulic investigation stage of the application for access.

daily balancing - BW’s water system is subject to daily in-house balancing, most of which occurs automatically with inputs responding to levels in storage reservoirs and hence to demand. It is not normally essential during off-peak periods (autumn, winter, or spring) that small inputs and outputs, relative to the size of the zone, are accurately balanced daily. If such balancing is necessary because of the scale of the impact this will be identified during the feasibility study. During times of high summer demand, the licensee should expect to balance its inputs and outputs daily. BW will be flexible about the degree of accuracy necessary.

seasonal and annual balancing – as described above, BW will expect the licensee to provide details of the expected demands from its customers for the coming year with particular reference to diurnal and seasonal patterns of use, together with an assessment of the likely availability of

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water from any sources, treatment works or secondary supplies operated by the licensee.

Efficient operation

BW operates its supply system so as to minimise energy costs, particularly by making use of off-peak power tariffs. Where possible, without undue use of system storage or the risk of over- or under-pressurisation in the network, BW will allow the licensee to operate its source, treatment works or secondary supply in the most efficient manner.

Imbalance accounting and reconciliation

For the purposes of financial balance accounting, the volumes recorded on the inlet point and outlet point meters will be used, to the nearest cubic metre.

BW and the licensee will provide in the access agreement for:

a balancing period, usually 1 month, 3 months or 12 months the normal tolerance limit allowed in the balance, expressed as a

percentage of the supply (say 1% for example), and specific to the circumstances of that supply.

In the event of a shortfall in the volume of water introduced by the licensee compared to the relevant customer usage over the agreed balance period, and such shortfall being within the normal tolerance limit, then BW will charge the licensee for the shortfall in accordance with the actual cost of making good that supply. In the event of such shortfall being outside the normal tolerance limit, then BW will charge the licensee for the shortfall in accordance with its standard published tariffs. BW will not make any payment for any excess volume supplied.

The information will be contained in a statement provided to the licensee at agreed intervals, which may be more frequent than the balancing period.

Peak and off-peak reconciliation

BW does not operate its supply system in a seasonal manner. Therefore, there should be no need to reconcile peak and off-peak balances.

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5 Supply system maintenance and emergency procedures

5.1 Diagnosis of system issues5.1.1 Obligations with respect to diagnosis of supply system problems

This section sets out the duties of undertakers and licensees with respect to problems in the supply system

This section sets out the general duties and responsibilities of a licensee and the undertaker. It is a guide and cannot relieve either party from its obligations under general or water industry specific legislation. It will be important in any access agreement that all parties know and fully understand their obligations, and share information quickly and effectively in the event of problems, in order that all necessary steps may be taken to ensure all parties comply with the law and any guidance issued by regulators.

Responsibility of the undertaker

The undertaker remains responsible at all times for the operation and management of its network, including balancing flows and pressures, and ensuring it does (and will continue to be able to) meet its obligations under the terms of the WIA91, which are wide-ranging and include but are not limited to:

supplying water which meets the requirements of the Water Supply (Water Quality) Regulations 2000, and any amendments thereof, and any guidance issued by the DWI, and is not likely to breach those regulations

operating and managing the supply network in a manner so as to minimize the risk of failure to meet the terms of the WIA91

compliance with the terms of the Water Undertakers (Information) Direction 2009 (see further details below)

requirements to supply a generally constant supply of water at sufficient pressure

maintaining the serviceability of the asset base carrying out both planned and unplanned maintenance in a manner which

minimizes disruption of the service, and in particular any risk to water quality

ensuring the security of the network and planning for emergencies, and in particular meeting the requirements of the Security and Emergency Measures (Water and Sewerage Undertakers) Direction 2005 (SEMD 2005), and the Security and Emergency Measures (Licensed Water Suppliers) Direction 2006 (SEMD 2006)

making plans to manage operations in the event of drought planning for future water resources needs

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providing water for fire-fighting purposes managing leakage from the system working safely in accordance with the Health and Safety at Work Act

1974 submitting information and plans to Ofwat relating to performance and

future proposals in order that Ofwat may carry out its duties as a regulator and set price limits from time to time

measuring quantities of water put into the system and supplied to licensees’ customers.

The undertaker will continue to be responsible for early diagnosis of any system problems that may jeopardize its ability to meet its obligations. This will include:

continuing to monitor the performance of the network system, and making any modifications necessary to meet any changing obligations

obtaining all data or information required from a licensee to enable assessments of system performance to be made

collating any information on security or emergency planning matters necessary to continue to have appropriate plans in place

making decisions about the need (if it arises) to discontinue the input of water from any source whether operated by a licensee or the undertaker.

In connection with the last of these, in the event of a situation arising which could lead to the cessation of input of water from a licensee’s source and treatment works, BW will make all reasonable attempts to discuss the matter fully with the licensee prior to any action. The circumstances and risks at the time may dictate the practicality of this.

BW requires that all inputs from a licensee’s treatment works or from a secondary supply must be fitted with a motorised control valve which can be remotely operated by BW from its control room. The purpose of this is to ensure that BW can suspend input into its network in an emergency. BW is conscious of the need to understand the risks to plant of such operations as shutting valves, but it will be the licensee’s responsibility to ensure that the operation of such a valve does not damage any upstream plant.

Water Undertakers (Information) Direction 2012

The Information Direction 2012 requires the provision by water companies to the DWI of various types of information, including:

details of supply zones, treatment works and service reservoirs (including maps)

monthly results of drinking water quality samples the immediate notification of events, incidents and emergencies that:

give rise or are likely to give rise to significant risk to health cause significant concern, either locally or nationally include reports of disease that might be associated with the water

supply annual information on consumer complaints about drinking water quality.

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Responsibility of the licensee

A licensee inputting water from its own source and treatment plant, or from a secondary supply, will have obligations under the terms of the WIA91. Requirements will include:

complying with the terms of the Water Supply (Water Quality) Regulations 2000, and any amendments thereof, and any guidance issued by the DWI, such that water input is not likely to breach those regulations at the point of entry

development and maintenance of a thorough assessment of the risks involved in making the supply (a Water Safety Plan)

meeting the reasonable requirements of the primary undertaker for the quality of the water at the point of entry, which means that water quality at customers’ taps is unlikely to breach the regulations, both in the short and longer term

making plans for security and dealing with emergencies, where BW will expect a combined licensee to share plans with the undertaker, and BW will endeavour to integrate such procedures as are necessary to be effective overall for the benefit of all consumers.

In connection with the second of these points, BW will discuss and agree reasonable standards at the point of entry. In the case of some parameters, requirements may be absolute and breaches unacceptable at any time. In the case of some other parameters, it may be possible to agree target levels, breaches of which for short durations may be acceptable. An example might be the level of iron in treated water leaving a works, where for the protection of supply in the longer term, target levels will almost certainly need to be significantly lower than the allowable level at customers’ taps. In such a case, short-term excursions above an agreed target level are not necessarily serious providing the absolute standard is met, but would have to be kept under review. In some cases of input into the network, the target level for a particular quality parameter may depend on the likely proportions of waters from different sources.

5.1.2 Quality issues

This section clarifies the processes for exchange of information on water quality issues

The exact specification of water quality parameters that require monitoring (either online or through operational sampling) will depend on the circumstances and degree of risk. These include the nature and extent of known performance of the raw water, the treatment processes used or proposed, and the overall risk assessment carried out when details of a licensee’s plans are known. Risk assessment will inform the judgements to be made as to the parameters that need to be monitored, and the frequency of sampling (which may need to be continuous). The risk assessment must also identify hazards and critical control points, and specify the measures to be put in place to control them.

The overall objective will be for the licensee to demonstrate that the quality of water input will have no detrimental effects on the quality of water supplied to customers.

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As a general guide, monitoring of water quality falls into a number of categories:

compliance sampling and analysis, as required by legislation operational sampling of raw, partially treated or treated water which may

be required to demonstrate continuing safe operation online monitoring which may be required to demonstrate that processes

are operating satisfactorily, and that there is no undue risk of unacceptable water entering the network

a periodic review of data to demonstrate that there are no unacceptable trends (where the frequency of such reviews will depend on an assessment of the risks).

It is for the licensee to be satisfied that water input to the system meets the absolute standards required by law, and any tighter standards set to ensure that the undertaker can meet its obligations at customers’ taps both in the short and longer term. In this context, a combined licensee should refer to the Ofwat guidance on access codes, which states that a licensee is required to ensure that the water introduced into the supply system is compatible with the water already in that supply system. Compatibility includes factors such as taste, smell, appearance and hardness.

Licensees will have access to all compliance sampling results held by BW. Any operational data, whether from online monitoring or sampling carried out by BW, will also be made available if needed by the licensee in order to make decisions about supplies to customers or inputs to the network.

Depending on the circumstances of any particular access arrangement, BW and the licensee will agree suitable and fit-for-purpose methods for the exchange of water quality data. Based on both parties’ risk assessments, BW and the licensee will discuss what information needs to be exchanged, and at what frequency. The parties will also agree what parameters are important for the purposes of defining what might constitute an emergency, or a situation where corrective action may be required.

The parties will agree contact names, details and timescales for exchange of data in the case of emergencies. In an emergency, where it may be necessary for the input of water by the licensee to be temporarily suspended, it will primarily be the licensee’s responsibility to suspend the input, but BW will reserve the right to effect a suspension (while taking fully into account the impact that such action might have on a licensee’s assets). In many if not most cases, it does not automatically follow that the supply to the licensee’s customers would need to be stopped. Most water supply systems have sufficient flexibility to withstand short-duration suspension of one or more inputs, depending on the local circumstances.

The rapid communication of water quality problems is important under all circumstances, but especially to minimize the subsequent impact on all customers. Licensees will be aware that the impact of, say, a microbiological problem with treated water from its input could lead to an emergency response which appears disproportionate to the scale of that input, because of the risk to all customers downstream of the input.

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For critical parameters, such as chlorine dosing, BW will normally expect a licensee to deploy an auto-shutdown system to ensure that un-disinfected water could not enter supply.

Where water quality to a licensee’s customers is affected by BW operations, which would always be the case in a wholesale situation, BW will give the licensee at least the same service it gives to all other customers in the event of quality problems. BW will be responsible for ensuring that all customers that might be affected by any concerns about the quality of water are notified promptly (for example, of the need to boil the water). The licensee must ensure that BW has up-to-date lists of the licensee’s customers, included any identified as special consumers.

Appendix C contains a link to the Water Supply (Water Quality) Regulations with which combined licensees are required to comply.

5.1.3 Hydraulic issues

This section deals with the processes for exchange of information on hydraulic issues

The feasibility study (see 2.3) will identify those aspects of hydraulics that may be critical to the operation of the network. It is anticipated that, in most cases of common carriage and during normal steady-state operation of a licensee’s assets and the network, there are unlikely to be major hydraulic issues requiring frequent exchange of information. That being the case, routine hydraulic issues may be covered during a periodic review of operations between BW and the licensee. BW will alert the licensee to any planned alterations to the network which could have an impact on its hydraulics, and will also have shared and discussed the impact of its longer term plans during the application and feasibility process.

In the event of hydraulic performance issues being identified by the licensee, or the licensee’s customers, a mechanism will be set out in the access agreement for those issues to be raised.

It is not expected that licensees will be asked to provide much, if any, information on network levels of service (such as DG2 low pressure), as these will in almost all cases be provided from BW’s routine network monitoring systems.

5.1.4 Real-time information capture systems

This section deals with processes for information gathering and exchange in connection with real-time telemetry systems

BW operates company-wide telemetry systems for the monitoring and control of assets, and for the monitoring of certain aspects of network performance. A licensee making an input of water into the system may make use of the telemetry system, if desired, for the purpose of monitoring the performance of its own assets. BW can also provide, if required, full round-the-clock monitoring at its control centre. These facilities can also be provided for a wholesale supply where a licensee wishes to monitor service levels at a customer’s boundary. The charges for such services can only be case-specific, and will be negotiated as part of the access agreement, but BW will charge only the reasonable additional costs that it incurs.

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It is essential, in the case of a licensee requiring BW to monitor performance on its behalf, that very clear and unambiguous trigger levels and required actions are specified and documented.

In terms of information transfer, the speed and frequency of data exchange will depend on the assessment of risks. However, it is important that certain water quality data, and possibly hydraulic data, are passed between the parties very quickly so as to minimize risk to consumers, especially where there may be concern that the water may not be wholesome or may pose a risk to health.

For this reason it will be necessary to agree targets for response to certain situations. It is not possible to give a definitive list until an assessment of case-specific risks is carried out. Licensees will be aware that, notwithstanding any arrangements agreed between the parties for the exchange of water quality data, they are not relieved of any obligation under the law to notify other organizations such as the DWI. A licensee also has a duty under its licence to notify the undertaker immediately in the event of an actual or potential incident which would put the undertaker at risk of supplying water which is either unwholesome or unfit for human consumption (within the meaning of Sections 67 and 70 of the WIA91). Immediate response means contacting the undertaker straight away, no matter what time of day, and persisting in the event of any contact problems. Any delay in contact does not relieve the licensee of any obligation to suspend an input of water if necessary to allow the undertaker to meet its obligations.

5.1.5 Reporting procedures

This section includes arrangements for contact, and procedures for information recording and reporting

Both parties need to agree contact names and details. BW would prefer to use simple reporting formats, such as email or spreadsheets or database files, for non-urgent data.

Procedures to report and record emergencies will be agreed between BW and the licensee and will be set out as part of the access agreement. It is important that such procedures are, as far as is reasonably practicable, in line with both parties’ established and existing procedures.

Emergency contact must always be made in person between nominated representatives of BW and of the licensee. Arrangements for contact with customers can be found in 6.2.

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5.2 Planned system maintenanceThis section outlines requirements for and information connected with routine and planned maintenance, including obligations, maintenance standards and risk assessment

5.2.1 Obligations with respect to planned maintenance

Responsibility of the undertaker

BW has in place comprehensive policies and procedures for the operation, monitoring and maintenance of the assets comprising the supply system.

BW will inform a licensee of any planned system maintenance that may have an impact on the licensee, or the licensee’s customers, a week in advance of the activity, and, where possible, will arrange to carry out maintenance which has any impact on either the operation of the licensee’s assets or the licensee’s customers at a mutually acceptable time. It will be for the licensee to inform its customers in turn. (For information, BW gives its own customers using more than 10 Ml/a seven days’ notice in writing of a planned interruption.)

In the event of the customer informing the licensee of concerns about the potential impacts of the maintenance activity, BW will discuss the matter with the licensee (and if appropriate the customer), and will use its best endeavours to avoid or mitigate those impacts.

Responsibility of the licensee

A licensee is responsible for planned maintenance on its own assets. The access agreement will cover detailed requirements and arrangements in this respect.

The licensee is expected to manage its assets such that it can reliably meet the standards set out in the access agreement for water quality, hydraulic performance and any other parameters, and the detailed application for access is required to set out how this will be achieved.

If the licensee proposes planned maintenance of its assets that will affect BW’s network operation (for example,that the introduction of water is to be suspended temporarily), the licensee should inform BW in advance and, where possible, plan to undertake the work at a mutually acceptable time. The access agreement will contain a specified minimum notice period.

It is expected that, where the reliability of the licensee’s assets may affect the wholesomeness of the water supplied, the licensee will adopt a precautionary approach to the maintenance of those assets.

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5.2.2 Specification of assets

BW will be responsible for the maintenance of all assets in its supply system, including all assets downstream of the inlet point (see 4.2.1).

The licensee will be responsible for the maintenance of all its assets, including all its assets upstream of the inlet point to the supply system.

5.2.3 Maintenance standards

In terms of the impact on customers of any planned maintenance, BW will not differentiate between its own customers and a licensee’s customers. The standards of service received by BW’s business customers are set out in the Business Charter, available on the website athttp://www.bournemouthwater.co.uk/publications

However, as set out in section 5.6.3, licensees and customers of licensees do not have the benefit of the Guaranteed Standards Scheme (GSS). The Business Charter is therefore only relevant in the WSL context in terms of standards of service, and not the GSS.

5.2.4 Risk assessment processes

Where major system maintenance is planned by either party that is likely to affect customers of the other party, the approach preferred by BW is to undertake a joint risk assessment in advance of the work.

5.3 Unplanned system maintenanceThis section covers the additional requirements for unplanned maintenance and repairs, over and above the requirements outlined in 5.2 for planned maintenance

5.3.1 Obligations with respect to unplanned maintenance

By definition, there is limited information in advance concerning unplanned maintenance. In the case of events such as burst mains, BW will inform the licensee of such events as quickly as possible, and will treat the customers of a licensee in exactly the same way as it treats its own customers.

Large-scale events are covered in more detail in sections 5.5 and 6.2.

5.3.2 Risk assessment processes

The access agreement for a combined supply should contain a provision for mutual understanding and knowledge by each party of the other party’s emergency procedures, contingency plans and management controls for risk. These include for circumstances such as unplanned maintenance events.

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BW has a programme of testing and updating of its emergency procedures, and is willing to involve a licensee in such a programme. As a minimum, BW should be provided with the results of annual reviews of emergency procedures and similar matters carried out by a licensee.

5.3.3 Emergency notices

The owner of the asset subject to unplanned maintenance will be responsible for the issue of emergency notices, if required.

5.4 Safety aspects of unplanned and emergency work5.4.1 Status classification

This section covers responsibilities and requirements for safety matters in unplanned and emergency work, including procedures for reporting

In the event of unplanned and emergency work it is important that there is good communication and co-ordination between the parties involved.

BW operates a system under which events are escalated to the relevant managerial level within the company, as follows:

operational incidents – those which are routine or semi-routine events, such as smaller diameter burst mains, initial responses to larger diameter bursts, initial responses to breakdowns of plant, responses to operational customer enquiries, and initial responses to security breaches

tactical incidents – those which require the involvement of an incident manager to ensure co-ordination and communication with other bodies, or which require a more general assessment and action to contain the situation

strategic incidents – those which have the potential to have a serious impact on operations, or may involve large-scale problems with the potential to have significant cost, public relations, legal or reputational implications; such incidents require director-level input.

BW and the licensee will discuss and mutually agree definitions of potential incidents, so that the licensee’s handling and reporting of unplanned and emergency incidents may be consistent with and feed into the normal BW mechanisms (and vice versa).

However, BW would not wish to impose overly cumbersome requirements where these are not necessary. For example, there may be cases where mechanical breakdown of a licensee’s source or treatment plant for short durations has little or no impact on the integrity of the supply system. In such cases, BW will not seek unnecessary emergency reporting. It may be possible to agree a standard format for daily or weekly (or some other frequency) reporting of semi-routine performance data.

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In the case of a combined supply, where a licensee inputs drinking water into the network, both parties must agree which treated water parameters require immediate or emergency action in the event that they depart from agreed limits, and which parameters require reporting the following day, or in routine periodic reports. In general BW will expect responses from licensees to be in line with what the DWI expects of undertakers under such circumstances.

Examples include:

a disinfection failure, which would require immediate automatic shut-down of the supply, and notification

the detection of coliforms in treated water, which would require immediate notification

a mechanical failure, where notification would depend on the local circumstances

for other treated water parameters, the parties will agree the specification as well as what action is required in the event of departure.

5.4.2 Standard emergency reporting procedures

BW will retain responsibility for reporting for all matters concerned with health and safety on the supply system. The procedures are set out in the BW Health and Safety Manual, the relevant sections of which will be provided to the licensee before the commencement of an access agreement.

The licensee is expected to take responsibility for health and safety issues and incidents, including reporting, on its assets. Any reports on such incidents should be copied to BW.

5.4.3 Major emergency reporting procedures

These are covered by the requirements of 5.4.2.

5.5 Emergency procedures for dealing with specific events and incidentsThis section deals specifically with procedures for dealing with emergencies

BW has in place plans and procedures for dealing with emergencies that might arise, such as failures of the network (bursts or discolouration), outages or quality departures at treatment works, security breaches, accidents and so on.

BW will expect a licensee to co-operate to ensure that BW can continue to meet its statutory obligations. This may include a requirement for the licensee’s own plans to be included in, or accompany, or at least be referenced in the BW procedures.

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BW tests its plans and reviews their effectiveness on a regular basis, and will expect a licensee to co-operate in this respect also, although at a level of involvement that is proportionate to the scale of potential impact a licensee might have. Licensees should however be aware that even a small-scale input of drinking water into the system could have effects on downstream users which are disproportionate to the volume of input because of mixing in the system.

BW will retain all responsibility for responding to supply system problems, of whatever nature. BW prefers to include all end-users in any emergency notification, because this is less likely to lead to confusion or omission. BW will inform a licensee whose customers are involved in any such emergency notification. These matters are also covered in 6.2.

BW will normally seek to recharge to a licensee any reasonable additional costs incurred as a result of carrying out emergency investigations, sampling and analysis, reporting, customer notification, providing emergency water supplies, legal costs, compensation or any other matter made necessary as a result of the licensee’s activities causing proven problems in the supply system.

5.6 Customer protection5.6.1 Special consumers

This section refers to the implications for special consumers of maintenance issues, and should be read in conjunction with 6.2 on contact arrangements

BW will endeavour to inform the licensee that a special consumer occupies or is likely to occupy any premises supplied by that licensee. There is a similar duty on the licensee. These provisions are designed to ensure that the undertaker and licensee work together to make certain that the special consumer is not disadvantaged or endangered. It should be noted that for BW to be aware of a special consumer then that consumer must have registered with BW as such.

In the course of negotiating an access agreement, BW and the licensee will include a common definition of a special consumer.

Customer contact arrangements for special consumers are set out in section 6.2. In terms of protection for special consumers during maintenance, BW will normally ensure that an alternative supply is made available.

5.6.2 Large-scale customer warning procedures

BW operates an emergency protocol and runs at a permanent state of preparedness should a large-scale emergency arise. In the event of such an emergency, BW will take a pragmatic view, treating licensees’ customers in the same way as its own. BW will notify the licensee of the situation at the earliest possible opportunity.

Contact with consumers for the purposes of large-scale warnings may be made by leaflet drop, local radio, or vehicle loudspeaker (or a combination of these). Licensees’ customers are automatically included in the warning procedures.

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5.6.3 Emergency compensation payments

Customers of licensees do not have the benefit of the Guaranteed Standards Scheme (GSS). If the access agreement negotiated between BW and the licensee includes a provision for compensation payments for emergencies, then any such payments will be made to the licensee not directly to the customer.

5.6.4 Emergency operational planning exercises

The BW emergency protocol is referred to in 5.6.2. BW tests this emergency protocol annually, reviewing its effectiveness and implementing changes if identified. It is likely to be of mutual benefit if a licensee participates in such a test, at least occasionally.

It would be useful for BW to understand how the licensee proposes to test its own emergency systems and procedures. It might be possible to link such tests with the BW tests.

5.7 Support processes5.7.1 Arrangements for press liaison

In the event of a major incident in the supply system, BW as the network owner and operator will be responsible for all aspects of press liaison. Licensees will be aware of the general conditions of the licence in connection with emergencies, including the provision of information.

5.7.2 Arrangements for dissemination of severe weather warnings

It is open to the licensee to make any arrangements to receive severe weather warnings that it sees fit.

5.7.3 Emergency contacts

BW is responsible for the management of all incidents affecting its supply system. BW will promptly notify the licensee if an incident is likely to affect the licensee’s assets or customers. The licensee should provide BW with names and numbers for 24-hour contact.

The licensee is responsible for the management of all incidents on its assets or on its customers’ premises. The licensee will promptly notify the BW control room if an incident is likely to affect the BW supply system.

Contact details for the BW control room will be provided in the access agreement.

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5.8 Reportable situationsThis section deals with incidents and events that are reportable to external bodies

A licensee will be aware of its obligations to notify certain external bodies of particular situations or events. Many of these notifications, and the timescales by which notification should be made, are required by legislation or guidance issued by the relevant regulator. It is for the licensee therefore to be satisfied that adequate systems are in place to ensure it can meet its obligations.

The licensee will be required to meet values specified in the access agreement for key parameters at the point of entry. Target, warning and emergency values will be specified, together with clear procedures and lines of communication should a warning or emergency value be exceeded. Prior to the commencement of any combined access, BW and the licensee will agree responsibilities for notifying DWI under the terms of the Water Undertakers (Information) Direction 2004. Responsibilities for notifying other bodies such as Ofwat, CCWater, EHOs, CCDCs, and HSE, will also be defined, as will representation on any Outbreak Control or Incident Team.

5.9 Security and Emergency Measures DirectionThis section covers the specific requirements of SEMD in the context of WSL

The Security and Emergency Measures (Water and Sewerage Undertakers) Direction 2005 was introduced, in addition to the existing 1998 Direction, to provide for issues of national security and emergency planning in the context of the WSL regime.

The main provision of the 2005 Direction is that, where an access agreement exists, and the licensee is unable to supply its customers due to an emergency or security event, the water undertaker should provide the necessary supply (taking account of the needs of all its other customers). Where the need to act is urgent, the undertaker may use the licensee’s facilities without prior authorisation. This is a specific provision in the Direction which, we believe, is included to ensure that in the event of the licensee being unable to operate a facility then security of supply to all customers can be maintained.

The Security and Emergency Measures (Licensed Water Suppliers) Direction 2006 contains equivalent provisions on licensees. In the case of a combined supply, the licensee is required to make security and emergency plans, and should consult the undertaker during the preparation of such plans.

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6 Customer contact arrangements

6.1 Customer contact arrangements for operational queries and complaintsThis section sets out the requirements for customer contact, excluding contact arrangements for emergency situations

Customer contact arrangements are likely to be case-specific, agreed between BW and the licensee at the time of preparing an access agreement. This section therefore provides guidance on general responsibilities and the types of issues to be covered.

As the customer is ultimately its supplier’s responsibility, BW will normally expect the licensee to be the point of contact for that licensee’s customers, and to provide full information to those customers about the arrangements for contact.

Although the details can be varied by negotiation, as a starting point BW would expect the licensee’s obligations in the area of customer contact to include the following:

reading customers’ meters providing contact arrangements for billing and operational issues issuing bills to customers revenue collection and debt management investigating operational issues on customers’ pipework dealing with complaints on issues of meter reading, billing and debt establishing a system to record and handle customer contacts passing on customers’ queries relating to operational or network issues providing information to BW on water quality matters providing BW with customer meter readings providing the sewerage undertaker with customer meter readings identification of special consumers establishing a system to handle large-scale or emergency procedures regular testing of all systems and procedures.

6.1.1 Customer meter reading

The licensee will normally be responsible for meter-reading for its customer meters. Where a customer reads the meter and wishes to supply an alternative reading, that is a matter for agreement between the customer and the licensee.

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6.1.2 Billing and debt collection

The licensee will normally be responsible for billing its customers and for collecting any outstanding debt.

It is open to a licensee to sub-contract meter-reading and billing back to BW, at the sole discretion of the licensee. This would be the subject of a further agreement between the licensee and BW, and the relevant customer contact arrangements would need to be specified in that further agreement.

Termination of supply

The licensee will need to put in place contact arrangements in the event of a termination of supply. There are three circumstances in which termination of supply made under Sections 66A to 66C WIA91 might arise:

the licensee pays BW but the customer does not pay the licensee the licensee does not pay BW but the customer has paid the licensee the licensee does not pay BW and the customer has not paid the

licensee.

In respect of the first circumstance, a licensee should ensure that the agreement with its customer clearly sets out how it will deal with non-payment.

BW will require that the access agreement provides for termination of the supply, and the agreement, in the event of non-payment (the second and third circumstances).

The access agreement will also include other circumstances where the supply may be terminated, such as:

water quality issues repeated and ongoing failure by the licensee to facilitate information

provision between the parties persistent failure by the licensee to provide the contracted volumes of

water.

Arrangements for customer contact in the event of termination for these and any other reasons must be specified in the access agreement and in the licensee’s agreement with customers. The access agreement should also set out those circumstances when BW may cease to supply a licensee’s wholesale customer at the licensee’s request.

In the event of a termination, the provisions of the interim duty to supply may apply, and further details may be found in 4.3.

6.1.3 Operational issues

Water supply queries

For all non-emergencies, the licensee’s customers should normally contact the licensee. The licensee should then liaise with BW as necessary.

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In the event of an emergency, as further described in 6.2, BW will take a pragmatic view of customer service. BW has no objection to any customer making direct contact under such circumstances, and would then liaise with the licensee to keep the customer informed of the status of the situation.

Sewerage queries

BW will normally expect the licensee to arrange with the sewerage provider to clarify where its customer’s first point of contact lies.

Where co-ordination between BW and the sewerage provider may be required, BW would expect the licensee to initiate the contact on behalf of its customer.

6.1.4 Complaint handling processes

A complaint handling procedure will be agreed between the licensee and BW at the time the access agreement is made. This will include the roles and responsibilities of both BW and the licensee. The licensee should ensure that its customers are fully aware of the responsibilities of both parties in this context.

The licensee’s customers can use the services of the Consumer Council for Water (CCWater) in the resolution of complaints, in exactly the same way as BW’s customers. Further information can be found on the CCWater websitehttp://www.ccwater.org.uk

6.1.5 Obligations on water undertaker

BW will comply with the procedures, timescales and agreed levels of service laid down in the access agreement.

BW will retain the responsibility to administer the Water Supply (Water Fittings) Regulations 1999, and may accordingly require to audit the licensee’s customer’s premises. The access agreement will contain the necessary provisions.

Condition R of its Instrument of Appointment requires BW to:

not use or disclose information received from licensees, including information on customers, except to the minimum extent necessary

inform the licensee if a special consumer occupies or is likely to occupy any premises supplied by the licensee

inform the licensee of actual or potential incidents likely to affect adversely water quality, water pressure, continuity of supply or similar matters of significance to the licensee’s customers

seek such information from a licensee as BW requires to carry out its functions.

6.1.6 Obligations on licensees

The main general obligations on a licensee in the context of non-emergency customer contact are to ensure that both BW and the customer have the necessary and accurate contact details, and that the customer is aware of circumstances in which direct contact can be made with BW.

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The standard conditions of a Water Supply Licence require a licensee to:

not use or disclose information received from water companies, including information on customers, except to the minimum extent necessary

comply with reasonable instructions given by water companies in connection with their drought plans or with any emergency

provide such information as water companies request in order to carry out their functions

inform water companies of actual or potential incidents likely to affect adversely water quality, water pressure, continuity of supply or similar matters of significance to customers

inform water companies if a special consumer occupies or is likely to occupy any premises supplied by the licensee, or if premises are no longer occupied by a special consumer

inform water companies if the licensee has any planned interruption to supply.

6.1.7 Disconnection

Under WIA91, BW can require the disconnection of any premises:

for carrying out necessary works (section 60) to prevent contamination or waste (section 75).

Where such requirements affect the licensee’s customers, the necessary provisions will be contained in the access agreement.

6.2 Customer contact arrangements for emergencies and eventsThis section deals with requirements for customer contact during emergency situations only

In contrast to routine matters, BW will assume the primary responsibility for contacting all customers, including those of the licensee, in emergencies.

In the event of an emergency, BW will take a pragmatic view of customer service. BW has no objection to any customer making direct contact under such circumstances, and would then liaise with the licensee to keep the customer informed.

The access agreement will contain the emergency contact provisions for both BW and the licensee. Both parties are expected to keep such provisions up to date.

6.2.1 Special consumers

BW is required to inform the licensee if a special consumer occupies or is likely to occupy any premises supplied by that licensee. There is a similar duty on the licensee. These provisions are designed to ensure that the undertaker and licensee work together to make certain that the special consumer is not disadvantaged or endangered.

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In the course of negotiating an access agreement, BW and the licensee will include a common definition of a special consumer.

It should be noted that for BW to be aware of a special consumer then that consumer must have registered with BW as such.

6.2.2 Large-scale customer warning procedures

BW operates an emergency protocol and runs at a permanent state of preparedness should a large-scale emergency arise. In the event of such an emergency, BW will take a pragmatic view, treating licensees’ customers in the same way as its own. BW will notify the licensee of the situation at the earliest possible opportunity.

BW tests this emergency protocol annually, reviewing its effectiveness and implementing changes if identified. It is likely to be of mutual benefit if a licensee participates in such a test, at least occasionally.

Contact with consumers for the purposes of large-scale warnings may be made by leaflet drop, local radio, or vehicle loudspeaker (or a combination of these). Licensees’ customers are automatically included in the warning procedures.

6.2.3 Obligations on water undertaker

The general obligations of a water undertaker for customer contact under normal operating conditions have been covered in 6.1.5. These will continue to apply in emergencies unless specifically outlined in 6.2.

BW maintains property location records on both its billing and GIS systems. Premises subject to an access agreement will be recorded as such, so that in the event of any emergency the property and its status will be immediately apparent. Any contact from licensees’ customers will be logged onto the billing system record, and immediately passed to the operations department.

BW will update as necessary its list of special consumers, and will pass any changes to the licensee where applicable.

6.2.4 Obligations on licensees

The general obligations of the licensee for customer contact have been covered in 6.1.6. These include the following specific requirements that may apply in an emergency:

to comply with the reasonable instructions of a water company to inform the water company of incidents that could affect water quality,

continuity of supply or similar matters.

The licensee should ensure that it has complete and accurate information regarding emergency contact details for its customers. It must also have support protocols in place which include identifying all designated customers with particular needs. The licensee should have procedures in place for notifying its customers of emergency situations (whether or not BW has already contacted the customer directly).

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The licensee should provide the undertaker with customer contact details for use in the case of emergency.

It would be useful for BW to understand how the licensee proposes to test emergency systems and procedures, including those for customer contact. It might be possible to link such tests with the BW tests described in 6.2.2.

As a general obligation, the licensee is also required to provide any information reasonably required by BW in order for the water company to carry out its functions, including under emergency conditions.

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7 Supply system connections7.1 Connection of licensee’s source to supply systemConnection of a licensee’s source to the BW supply system will not be made until the terms of access are agreed, and in particular a specification of the quality of water to be input.

BW will need to be satisfied that the risks associated with the operation of the licensee’s source and treatment works have been assessed and are acceptable, that any necessary DWI inspections have been carried out, and that any resulting corrective action has been taken.

It is firmly recommended that the licensee should discuss with BW all aspects of the connection of the licensee’s source to the supply system. This will enable the scope and programme of activities by all parties to be set out, understood and agreed. As guidance to a licensee, it is generally expected that:

BW will confirm by network modelling during the feasibility study the acceptability of the proposed point of connection to the system, and any reinforcement to the system that may be required, and will fully share the results of the modelling exercise

the licensee will make arrangements for any construction work up to the point of connection, and in doing so must comply with BW’s normal procedures for water hygiene, mains disinfection and pressure testing (which will be handed over at the discussion stage)

BW will make the connection to the network, which will be valved.

BW will provide information on the costs that the licensee will incur to connect the source to the supply system. An estimated cost will be given at the time of initial application, and a firm cost at the time of detailed discussions.

7.2 Connection of qualifying premises to supply systemMost eligible premises will already be connected to the network. Where a premises is to be newly connected to the supply system, then the arrangements set out in 7.1 above shall also generally apply.

Connection of qualifying premises to the supply system will be dealt with on the same basis as any new connection to the system. BW has in place a procedure for dealing with developers, which gives commitments for responding to enquiries and the levels of service that developers can expect. Details may be found in the information pack for new connections, which is available on the BW website:http://www.bournemouthwater.co.uk/publications

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As far as this procedure is applicable in the event of a licensee wishing to make a connection to the system, BW will apply similar principles and service levels.

For a premises being newly connected to the supply system, the licensee should notify BW when the premises is ready for inspection under the Water Supply (Water Fittings) Regulations 1999.

The licensee should also inform the relevant sewerage undertaker of the connection of qualifying premises to the water supply system.

7.3 Connection of secondary water undertaker’s supply system to primary water undertaker’s supply systemThe connection of a secondary undertaker’s system to the BW supply system will generally be dealt with in the same manner as the connection of a licensee’s source.

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8 Legal contract, arbitration and disputes resolution

8.1 Contract termsAn access agreement between BW and a licensee is a legal contract. The final terms of the contract can only be agreed after the completion of the detailed application and negotiation stages.

The type of contract will depend on the type of supply:

o for a combined supply, the contract will take the form of an access agreement negotiated for each application

o for a secondary supply, the contract covers two arrangements: firstly the agreement between the licensee and the primary undertaker over access to the primary undertaker’s supply system, and secondly the agreement between the licensee and the secondary undertaker over the arrangements for a secondary supply.

8.1.1 Contents

This section contains the list of contract terms or clauses that are likely to appear in each access agreement. The list is not definitive, and clauses may be added or omitted depending on the circumstances.

o Recitals

Recitals are the whereas clauses that precede the body of a contract, and explain in general terms what the agreement is about, who the parties are and why they are entering into the agreement.

o Definitions and interpretation

This clause will explain what the key terms and phrases used in the body of the agreement mean.

o Conditions precedent

This clause will set out those conditions that must be fulfilled by each party to the agreement before performance under the agreement can become due.

o Permission to access the supply system

This clause will set out the formal requirements with regard to granting permission to access the supply system, including that access will only be granted to licensees holding a relevant WSL licence, that entrants will not acquire ownership or control of any of BW’s assets, and that physical

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details of access will be in accordance with this access code, Ofwat’s guidance on access codes, and DWI requirements.

o Arrangements for access

This clause will contain all the physical conditions and arrangements for a combined or secondary supply.

o Acceptance of access code

This clause will provide that both parties must accept and be bound by the provisions of this access code, which will then form part of the agreement.

o Modifications

This clause will set out the process whereby either party can request changes to the terms of the agreement after its completion.

o Ownership of supply system and vesting

This clause will clarify that ownership of the supply system, including any extension made to it in connection with the agreement, remains with BW, and that the agreement does not confer any responsibilities for ownership, maintenance or other use of the supply system to the licensee or to the licensee’s customers.

o Material change

Linked to the clause above on Modifications.

o Liability

This clause will seek to apportion responsibility for certain events, to exclude liability for certain categories of damages, and to place reasonable limits on overall liability. It will seek to address, inter alia, liability, including (where appropriate) indemnities, relating to:

liability for damage and/or injury caused by each party to the other’s property and/or personnel;

liability for damage and/or injury caused to third party property or to the public;

liability for environmental impairment;

liquidated damages for breach by the licensee of measurable requirements.

o Force majeure

This clause will make provision to excuse either party from liability if some unforeseen event beyond the control of that party prevents it from performing its obligations under the agreement. It will cover natural disasters and other Acts of God, war or failure of third parties such as suppliers and subcontractors to perform their obligations to the contracting party, provided the failure to perform could not be avoided by the exercise of due care by that party.

o Exclusions

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Linked to the clause above on Liability, this clause will seek to exclude liability for certain categories of damages, and to place reasonable limits on overall liability.

o Indemnity

Linked to the clauses above on Liability and Exclusions, this clause will provide a legal exemption from the penalties or liabilities incurred as a result of the actions of the other party.

o Duration

This clause will set out the term during which the agreement will operate and will normally be of indefinite duration but with provisions to allow reviews at regular intervals and under certain conditions, for example after a period of inactivity by the licensee, or in the event of substantial and relevant changes of circumstance, including but not limited to Ofwat’s requirements, legislative changes or developments in the market.

o Termination

This clause will set out those events that will enable the agreement to be brought to an end by either party. For a wholesale supply, the Termination clause will be in the wholesale master agreement rather than the premises-specific schedule.

o Emergency suspension

This clause will provide for the necessary suspension of the operation of the agreement in certain situations classified as being an emergency.

o Back-up supplies

This clause will specify the action to be taken should BW be required to provide a back-up supply, and the financial arrangements in such circumstances.

o Interim duty of supply

This clause will provide for BW to replace the licensee and become the interim supplier to the licensee’s customers where

the contract between the licensee and the licensee’s customer is terminated or suspended, or

the agreement is terminated or suspended, and

the licensee’s customer does not have an agreement with another licensee.

o Payment

This clause will set terms of access charges and the arrangements for their payment.

o Dispute resolution

This clause will set out the procedure to be followed in the event that any dispute or difference concerning this agreement arises between the licensee and BW, in order to determine how such dispute or difference shall be resolved.

o Notices

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This clause will deal with the procedure for transmitting formal notices between the parties, for example specifying that all notices under the agreement shall be in writing and shall be sent by e-mail or facsimile or first class registered or recorded delivery post to the other party.

o Assignment and alienation

This clause will set out the process for one party assigning its rights and obligations under the agreement to a third party, and the conditions that must be satisfied before consent to such will be granted by the other party.

o Variations

Linked to clauses above on Modifications and Material Change.

o Waiver

This clause will set out that no failure or delay by either party in exercising any right, power or privilege under the agreement shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any further exercise thereof or the exercise of any right, power or privilege under the agreement.

o Severability

This clause will provide that if any term or provision of the agreement shall be held to be illegal or unenforceable in whole or in part under any enactment or rule of law, such term or provision or part shall to that extent be deemed not to form part of the agreement but the validity and enforceability of the remainder of this agreement shall not be affected.

o Entire agreement

This clause will provide that the agreement sets out the entire agreement between the parties and shall supersede all prior representations, arrangements, understandings and agreements between the parties relating to the subject matter of the agreement.

o Jurisdiction

This clause will provide that the construction validity and performance of the agreement and of the access code shall be governed at all times by English Law.

o Confidentiality

This clause will make provision for a confidentiality agreement to be signed by both BW and the licensee during the initial application stage to the agreement. It will also provide that the confidentiality agreement shall remain in force in respect of all existing and new customers of the licensee that become subject to the agreement. Where under the provisions of the agreement either party is required to disclose information to the other, the requirement shall be to only disclose information as is reasonably necessary to enable each party to undertake their respective obligations under the agreement.

o Insurance

This clause will require that the applicant shall at all times from the date of the agreement effect and maintain, with insurers acceptable to BW,

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sufficient insurance cover in respect of its liabilities under the agreement including but without prejudice to the generality of the foregoing:

Public and Product Liability Insurance;

Employer’s Liability Insurance; and

Professional Indemnity Insurance.

o Third party rights

This clause will specify that unless a right of enforcement is expressly provided for in the agreement it is not intended that a third party shall have the right to enforce any term of the agreement pursuant to the Contract (Rights of Third Parties) Act 1999.

o Compensation

This clause will specify the contractual penalties that will be applied under a combined supply access agreement in the event of a significant or repeated failure by the licensee to achieve the contracted and/or actual water inputs specified in the agreement.

o Provision of bonds and guarantees

This clause will set out the circumstances under which a bond or guarantee may be required. BW’s current requirements are set out in section 2.1.5.

Applicants should be aware that Ofwat can require that any terms in an access agreement should be changed in order that it complies with the guidance. This could possibly be retrospective.

8.2 Arbitration and disputes resolution processesThis access code assumes that it is in the interests of both parties that any differences between them should be resolved as quickly as possible, preferably without the need to go to court, and without affecting the customer. Ofwat has published a determination procedure on its website, to which licensees should refer in the first instance, but which applies only in specific circumstances such as eligibility and the terms and conditions of access agreements:http://www.ofwat.gov.uk/competition

The access agreement will contain provisions for the resolution of other disputes that may arise. These provisions will be agreed between the parties. As described below, BW’s preference is for a first stage of negotiation to be followed, if necessary, by arbitration.

Disputes about water quality issues will be referred to the DWI in all cases.

8.2.1 Negotiation

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Negotiation between the parties is intended to achieve an amicable resolution of any dispute. It takes place within a set timescale, and does not involve third parties. BW prefers negotiation as the first stage of the dispute resolution process.

8.2.2 Conciliation

Conciliation involves the use of a neutral third party to explore possible solutions to disputes. It is non-binding. BW prefers not to use conciliation but will consider its inclusion in an access agreement if requested by an applicant.

8.2.3 Mediation

Mediation is similar to conciliation but more formal, using a trained mediator to try to reach a solution that both parties can agree. It is also non-binding. As with conciliation, BW prefers not to use mediation but will consider its inclusion if requested by an applicant.

8.2.4 Arbitration

Arbitration is a formal process of dispute resolution where either a neutral arbitrator is appointed or the dispute is referred to a recognised organisation of arbitrators. The arbitration decision is final and binding on both parties. BW prefers arbitration as the second stage of the dispute resolution process.

Unless arbitration is chosen, either party may take legal action to resolve a dispute.

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Wholesale Supply Applications

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9 Operational code for wholesale supplies

This section contains the operational code for wholesale supplies under section 66A WIA91

In accordance with Condition of Appointment R (Provision of combined and wholesale water supplies), appointed water companies must include the operational code and common contract set out in this section within their access codes.

Condition of Appointment R requires an appointed water company’s access code to set out its procedure (including timetables) for dealing with a request made to it by a licensed water supplier (‘licensee’) under sections 66A, 66B or 66C WIA91. It also requires an appointed water company’s access code to set out the types of feasibility studies which the appointed water company may undertake in response to any of those possible applications, including the method of calculation of any costs associated with any such study with a view to recovering them from the licensee.

The operational code set out in this section contains the relevant procedure (including timetables) for dealing with a request made by a licensee under section 66A WIA91. It does not address the issue of feasibility studies as we do not envisage the need for such studies in the context of a request for a wholesale supply under section 66A WIA91.

Condition of Appointment R requires an appointed water company’s access code to set out the terms upon which the appointed water company will offer to perform each duty under sections 66A to 66C WIA91 and indicative charges for performing each duty under sections 66A and 66B WIA91. The relevant terms in respect of the appointed water company’s duty under section 66A WIA91 are those set out in the common contract (unless the licensee wishes to negotiate a wholesale supply on different terms), and the operational code provides guidance with respect to the fixing of charges for performing that duty in accordance with the costs principle set out in section 66E WIA91.

Each appointed water company must comply with its access code. It must also provide a wholesale supply of water to a licensee on the terms set out in the common contract, if requested to do so by the licensee.

The common contract is shown in Appendix F.

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9.1 Overview of the operational code

9.1.2 Order of precedence

If there is any conflict between the following, the order of precedence shall be:

(a) Any law;

(b) The Access Codes Guidance, incorporating the operational code and common contract.

9.1.2Definitions

(a) References to ‘the Act’ are to the Water Industry Act 1991 (as amended) unless otherwise specified.

(b) References to an ‘appointed water company’ are to an undertaker appointed under the Act to provide water services to a defined geographic area.

(c) References to a ‘licensee’ are to a company holding a water supply licence under the Act.

(d) References to ‘the parties’ are to the licensee and appointed water company that have an agreement, or are seeking to enter into an agreement, for the wholesale supply of water under section 66A of the Act, unless the context requires otherwise.

(e) References to ‘the operational code’ are to this document as amended from time to time.

(f) References to ‘the common contract’ are to the common contract for wholesale supplies under section 66A of the Act as amended from time to time

9.1.3 Objectives and purpose

The operational code establishes rules for the wholesale supply of water under section 66A of the Act and the entry into an agreement for such supply.

9.1.4 Status and enforceability

(a) Under section 66D(4) of the Act, Ofwat is required to issue guidance in

sections 66A-66C of the Act must be made.

(b) The operational code forms part of Ofwat’s guidance and applies to wholesale supplies of water by an appointed water company to a licensee under section 66A of the Act.

(c) Each appointed water company is required by Condition of Appointment R (Provision of combined and wholesale water supplies)

to publish an access code which conforms to Ofwat’s guidance, and to comply with it.

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(d) In accordance with these requirements, the operational code must be included in an appointed water company’s access code, and the appointed water company must comply with its provisions.

9.1.5 Ofwat’s role

(a) Ofwat shall ensure the effective implementation and operation of the operational code.

(b) In so doing, Ofwat shall:

(i) Act independently of the interests of any market participant or group of market participants;

(ii) Act impartially and show no undue preference in its relationship with market participants; and

(iii) Act with appropriate speed in taking any necessary action.

(c) Ofwat has the power under section 18 of the Act to issue enforcement orders to secure compliance with appointed water companies’ Conditions of Appointment (for example, Condition of Appointment R (Provision of combined and wholesale water supplies) and Condition of Appointment S (Customer transfer protocol)) and licensees’ standard licence conditions.

(d) Ofwat has the power under sections 66D, 66G and 66H of the Act to make determinations on aspects of the water supply licensing framework.

(e) Ofwat shall chair an industry forum established under the terms set out in the Customer Transfer Protocol to discuss any proposed changes to the operational code and common contract.

(f) Ofwat may from time to time revise its guidance under section 66D of the Act, in accordance with section 66F of the Act.

9.1.6Duties of appointed water companies and licensees to other bodies

Appointed water companies and licensees shall respond promptly to any requests for information and comply with any relevant guidance from:

(a) Consumer Council for Water;

(b) Environment Agency (including Environment Agency Wales); and

(c) Drinking Water Inspectorate.

9.1.7England and Wales

Appointed water companies and licensees shall have regard to any differences in the relevant laws in England and Wales.

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9.2 Applying for access9.2.1

This section sets out the process which shall be followed when an eligible customer wishes to be supplied by a licensee and the licensee wishes to purchase a wholesale supply of water from an appointed water company under section 66A of the Act in order to supply that customer. For a wholesale supply, the licensee is entitled to use the common contract as the access agreement between the parties unless it wishes to negotiate a supply on different terms.

9.2.2

If a licensee wishes to use the common contract as the access agreement between the parties, the application process is as follows:

(a) Licensee submits its application to the appointed water company. That application shall comprise:

(i) a copy of the customer’s consent to switch supplier (see further sections 2.4 and 2.5 below); and

(ii) a completed copy of the common contract (see further section 2.6 below).

(b) The appointed water company shall offer an access price for the licensee’s customer and provide a signed copy of the common contract within 10 working days of receiving the licensee’s application. The access price offered by the appointed water company shall remain valid for six (6) months and shall specify the price per m³ and for wholesale water and associated administration costs. The offer shall also explain:

(i) the basis of the associated administration costs; and

(ii) any difference between the indicative price for such a customer and the price in the customer-specific offer.

(c) If the licensee accepts the access price offered by the appointed water company, the Customer Transfer Protocol process will switch the customer to the licensee. If the licensee is unable to agree an access price with the appointed water company, the parties shall follow the dispute resolution procedure set out in section 4 below.

9.2.3

If a licensee has chosen not to use the common contract as the access agreement between the parties, the application process is as follows:

(a) Licensee submits its application to the appointed water company. That application shall comprise:

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(i) a copy of the customer’s consent to switch supplier (see further sections 2.4 and 2.5 below); and

(ii) any contract or terms that is/are proposed or agreed between the parties.

(b) The appointed water company shall contact the licensee within two (2) working days of receiving the licensee’s application to discuss that application and commence any negotiation.

(c) The appointed water company shall offer an access price for the licensee’s customer and provide a signed copy of an agreed contract within 10 working days of receiving the licensee’s application (or such longer period as the parties may agree). The access price offered by the appointed water company shall remain valid for six (6) months and shall specify the price per m³ and for wholesale water and associated administration costs. The offer shall also explain:

(i) the basis of the associated administration costs; and

(ii) any difference between the indicative price for such a customer and the price in the customer-specific offer; and

(iii) any specific terms agreed by the parties.

(d) If the licensee accepts the access price offered by the appointed water company, the Customer Transfer Protocol process will switch the customer to the licensee. If the licensee is unable to agree an access price with the appointed water company, the parties shall follow the dispute resolution procedure set out in section 4 below.

9.2.4

The customer’s consent to switch supplier shall include the following

(a) Contact name(s) for the customer;

(b) Full contact details for the customer;

(c) Any customer reference number provided by the existing supplier;

(d) Meter serial number(s), if known; and

(e) Previous three (3) years’ water consumption, if available.

9.2.5

The customer’s consent to switch supplier shall be dated no more than two (2) months before the licensee submits its application to the appointed water company, or otherwise verified by the customer as being in force as at the date of the licensee’s application.

9.2.6

If the licensee has chosen to use the common contract as the access agreement between the parties and provided all of the information required of it by that contract, the appointed water company shall not reject the licensee’s application on the grounds of insufficient information.

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9.2.7

An appointed water company shall not recover from a licensee any costs of processing an access application.

9.2.8

An appointed water company shall not charge the licensee for providing copies of any documents relating to the transfer of a customer or for clarifying its policy and information requirements.

9.2.9

A licensee shall not charge the appointed water company for providing any information which is necessary for the carrying out of the appointed water company’s functions.

9.2.10

The parties shall comply with any reasonable request for information received from each other.

9.3 Access pricing9.3.1

This section provides guidance with respect to the fixing of access charges, in accordance with section 66D(6) of the Act.

9.3.2

Appointed water companies shall publish indicative charges for the wholesale supply of water. These charges shall be published in such manner as may be specified by Ofwat.

9.3.3

Appointed water companies operating wholly or mainly in England shall, as a minimum, publish indicative wholesale supply charges for customers consuming 5Ml, 25Ml, 50Ml and 500Ml per year. If an appointed water company has a tariff with a threshold between 5Ml and 50Ml per year, it may publish indicative wholesale supply charges relevant to that tariff instead of for customers consuming 25Ml per year. An appointed water company must publish indicative wholesale supply charges for at least one consumption point between 5Ml and 50Ml per year.

9.3.4

Appointed water companies operating wholly or mainly in Wales shall, as a minimum, publish indicative wholesale supply charges for customers consuming 50Ml and 500Ml per year (This clause not applicable to BW)

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9.3.5

The indicative charging information published by an appointed water company shall clearly show the difference between its access price and the wholesale supply charge it has calculated.

9.3.6

The indicative charging information published by an appointed water company shall include:

(a) Charging data for a period of five (5) years, starting with the current charging year;

(b) The difference in wholesale supply charge where:

(i) the licensee pays its charges in arrears; and

(ii) the licensee pays its charges in advance.

Charges at (b)(ii) shall be calculated in accordance with paragraph 4 of schedule 2 to the common contract; and

(c) The discounts for the first and second customer of a specific licensee.

9.3.7

Indicative wholesale supply charges published by an appointed water company shall be for the service defined in clause 2 of the common contract.

9.3.8

When publishing or amending any indicative charging information, an appointed water company shall explain any assumptions it has made for the purpose of calculating that information.

9.3.9

Indicative charging information shall be reviewed by an appointed water company every year by 15 October. This information may also be reviewed at any other time. An appointed water company shall notify Ofwat and publish updated information on its website within seven (7) days of making any modifications to its indicative charging information.

9.3.10

If requested, an appointed water company shall provide Ofwat with information to explain how it has calculated its indicative wholesale supply charges. Such information shall be provided in such manner, and by such time, as Ofwat may specify.

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9.3.11

Nothing in this operational code limits an appointed water company’s ability to publish indicative charging information for supplies and in respect of circumstances which are not specified in this section.

9.3.12

If a licensee has made an application to an appointed water company in respect of the supply to a particular customer, the appointed water company may offer its published indicative wholesale charge for such supply if it considers that charge to be appropriate.

9.4 Dispute resolution procedure9.4.1

This section sets out the dispute resolution procedure applicable to all disputes and differences arising out of or in connection with this operational code.

9.4.2

The parties shall, in the first instance, attempt to resolve any dispute or difference using the following procedure:

(a) Either party may serve a notice on the other party which expressly refers to this section and provides sufficient information to enable the other party to understand the nature of the dispute or difference. Following service of such a notice, the parties shall each use reasonable endeavours to resolve the dispute or difference by prompt discussion in good faith at a level appropriate to the dispute or difference in question.

(b) If the dispute or difference remains unresolved after 10 working days (or such other period as agreed by the parties) of the notice being served, an appropriate representative of each party’s senior management shall attempt to resolve the dispute or difference by prompt discussion in good faith.

(c) If the dispute or difference remains unresolved after 10 working days (or such other period as agreed by the parties) of such referral to senior management then, unless the parties agree otherwise, this initial procedure shall be treated as having been exhausted.

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9.4.3

For any dispute or difference which has not been resolved through the initial procedure in section 4.2, either party may:

(a) refer it to such alternative dispute resolution process as agreed by the parties; or

(b) refer it to a competent authority, provided that such authority has specific powers to resolve the dispute or difference.

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Access Pricing

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10 Access pricing

10.1 Indicative access pricesThis section includes details of the indicative access prices in each BW water resources zone

General

Indicative access prices are included as a guide to potential applicants. They are based on the assumptions set out in this section. Indicative access prices are based on the costs principle and Ofwat’s access code guidance. The tables in this section are numbered to correspond to the access code guidance.

Costs principle

The costs principle uses as its starting point the revenue that BW receives or would receive from the customer under the current charges scheme. The framework for the calculation is:

Access price = wholesale charge

The following indicative access prices have been calculated and are published here:

for each water resource zone (WRZ); BW has 1 WRZ four standard volumes of water (5, 25, 50 and 500 Ml/a) for both wholesale and combined access for each of the five years from 2015/16.

In the indicative price tables, the access price is calculated from the wholesale charge that applies to customers at the four standard volumes. The calculation of indicative prices assumes a flat annual demand profile. BW does not operate different geographical tariff zones.

The additional costs arising from the WSL regime but which are not customer-specific, such as setting up the CTP, producing and maintaining the access code, calculating and updating access prices, and the costs of Reporter services are not included in access prices.

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10.1.2 Indicative wholesale prices

Basis for calculation

The table below shows the basis for the calculation of indicative wholesale prices. It itemises the expected wholesale charges and expenses, to derive the access charge.

Wholesale charges 2015-16Volume (Ml/a) 5 25 50 500Fixed charge (£) 65.66 770.75 770.75 12,247.57

Wholesale tariff (p/m3) 103.92 97.98 97.98 75.92Wholesale income (£) 5,262 25,266 49,761 391,848

Calculation for year 2015-16

5Ml/a 25 Ml/aFirst

customerSecond

customerFirst

customerSecond

customerWholesale income (£) 5,262 5,262 25,266 25,266

Access charge (£) 5,262 5,262 25,266 25,266

5 Ml/a 25 Ml/aFirst

customerSecond

customerFirst

customerSecond

customerWholesale price access price (£/m3)

1.0524 1.0524 1.0106 1.0106

Wholesale discount £/m3 0.0000 0.0000 0.0000 0.0000

Wholesale discount £/m3 for payment in advance

0.0000 0.0000 0.0000 0.0000

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Calculation for year 2015-16

50 Ml/a 500 Ml/aFirst

customerSecond

customerFirst

customerSecond

customer

Wholesale income (£) 49,761 49,761 391,848 391,848

Access charge (£) 49,761 49,761 391,848 391,848

50 Ml/a 500 Ml/aFirst

customerSecond

customerFirst

customerSecond

customerWholesale access price (£/m3)

0.9952 0.9952 0.7837 0.7837

Wholesale discount (£/m3) 0.0000 0.0000 0.0000 0.0000

Wholesale discount for payment in advance (£/m3)

0.0000 0.0000 0.0000 0.0000

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Indicative wholesale prices

The table below shows the indicative wholesale prices for the four standard volumes for each of the next five years. For wholesale prices there is a single company-wide price. The company only has one WRZ.

Indicative Wholesale Price Information

2015/16 2016/17 2017/18 2018/19 2019/20

Wholesale Volume 5 (Ml/a)

Wholesale charge (£) 5,262 5,305 5,322 5,323 5,325

Access charge (£) 5,262 5,305 5,322 5,323 5,325

Wholesale Volume 25 (Ml/a)

Wholesale charge (£) 25,266 25,471 25,552 25,560 25,567

Access charge (£) 25,266 25,417 25,552 25,560 25,567

Wholesale Volume 50 (Ml/a)

Wholesale charge (£) 49,761 50,164 50,325 50,340 50,355

Access charge (£) 49,761 50,164 50,325 50,340 50,355

Wholesale Volume 500 (Ml/a)

Wholesale charge (£) 391,848 395,022 396,286 396,405 396,524

Access charge (£) 391,848 395,022 396,286 396,405 396,524

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10.1.2 Indicative combined supply prices

The table below shows the indicative combined supply prices for the four standard volumes for each of the next five years, for the WRZ. There is only one resource zone.

Indicative Combined Supply Information

2015/16 2016/17 2017/18 2018/19 2019/20

BOURNEMOUTH WRZ

Common Carriage Volume 5 (Ml/a)Retail price (£) 5,726 5,726 5,726 5,726 5,726

Combined Supply Discount (£) 625 625 625 625 625

Discount for Payment in Advance (£)

625 625 625 625 625

Common Carriage Volume 25 (Ml/a)Retail price (£) 26,148 26,148 26,148 26,148 26,148

Combined Supply Discount (£) 2,071 2,076 2,076 2,076 2,071

Discount for Payment in Advance (£)

2,071 2,076 2,076 2,076 2,076

Common Carriage Volume 50 (Ml/a)Retail price (£) 50,643 50,643 50,643 50,643 50,643

Combined Supply Discount (£) 3,938 3,949 3,949 3,949 3,938

Discount for Payment in Advance (£)

3,938 3,949 3,949 3,949 3,938

Common Carriage Volume 500 (Ml/a)Retail price (£) 394,038 394,038 394,038 394,038 394,038

Combined Supply Discount (£) 38,212 38,315 38,315 38,315 38,212

Discount for Payment in Advance (£)

38,212 38,315 38,315 38,315 38,212

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General information on the supply demand balance

Average and peak supply demand balance summaries are provided for the WRZ for each year of the current draft water resources plan. The positive figures indicate surpluses for the whole period, which is the principal reason for the lack of change in the combined supply discount.

10.2 Case-specific access pricesThis section includes an explanation of how case-specific access prices will be calculated

General

Case-specific access prices can only be calculated in response to an application for access. In calculating case-specific access prices BW is bound by the WIA91 and will follow Ofwat’s access code guidance.

The costs of making connections or reinforcements to allow the supply to take place will be met by direct payment by the licensee to BW, and are not included in the calculation of access prices.

Case-specific wholesale prices

Wholesale prices will be calculated for the specific customer service standards required by the licensee.

Case-specific combined supply prices

Combined supply prices will depend on a number of key factors, including the volume and location of input, the specific customer service standards required by the licensee, and the estimated impacts on BW’s future costs of maintaining its supply demand balance.

Secondary supply prices will be based on the specific expenses incurred by BW in providing the secondary supply.

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11 Glossary of defined terms

Access: The wholesale supply of water by a water undertaker to a licensee for the purpose of making a retail supply of water to the premises of the licensee’s customer; and the introduction of water by the licensee into a water undertaker’s supply system for that purpose (common carriage).

Access agreement: An agreement between a water undertaker and a licensee for access by a licensee to a water undertaker’s supply system pursuant to the Retail Authorisation and/or Supplementary Authorisation.

Access code: A water undertaker’s document that sets out all principal aspects of access to its supply system and the terms and conditions on which it will grant access to its supply system by a licensee. The access code comprises the standard terms and conditions common to all water undertakers and the terms and conditions specific to that water undertaker.

Access terms: The terms under which a water undertaker and a licensee agree access to a water undertaker’s supply system.

Adjoining supply system: Supply systems of other water undertakers with direct physical connections to the water undertaker’s own supply system.

Back-syphonage: Unwanted syphoning of water into the supply system.

Back-up supplies: These are supplies that can be called into operation in the event of failure of the duty supply.

Boil notices: A notice issued by the undertaker as a warning that water should be boiled before drinking as a precautionary measure.

Chemical parameters: Limits for the level of chemicals found in water. Examples are iron, chlorine, sulphates, pesticides, ammonium compounds.

Chlorination: The use of chlorine to disinfect water.

Coliform bacteria: A group of bacteria found in the intestine and faeces of most animals. Coliforms can sometimes be found in untreated water. The treatment process removes them and disinfection prevents their reappearance in the distribution system.

Combined Licence: A Retail Licence with the Supplementary Authorisation, authorising the holder to introduce water into a water undertaker’s supply system and to retail that water to a customer’s eligible premises (section 17A(6) WIA91).

Combined supply: A supply made pursuant to a combined licence.

Costs principle: As defined in section 66E of the WIA91.

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Cryptosporidium: A waterborne micro-organism, single celled protozoan parasite, which causes disease and illness.

Deployable output: The output of a commissioned water supply source, group of sources or bulk supply under worst historic drought conditions as constrained by abstraction license (if applicable), environment, treatment, raw water mains and/or aquifers, pumping plant and/or well/aquifer properties, transfer and/or output main, water quality.

Disinfection: The process of treating water in order to kill harmful organisms.

Diurnal variations: Variations occurring within a daily (24 hrs) cycle.

Drought: A prolonged period of dry weather that reduces river flows, reservoir inflows or groundwater levels to unusually low levels.

E.Coli: A bacterium taken as an indicator of faecal contamination.

Eligible premises: Premises that satisfy the eligibility requirements in section 17A(3) WIA91. Each of the following three requirements must be satisfied in relation to each of the premises in order for a customer’s premises to be eligible:

the customer’s premises must not be household premises (as defined in section 17C WIA91)

when the licensee first enters into an undertaking with a customer to give the supply, the total quantity of water estimated to be supplied to the premises annually by the licensee must be not less than 5 megalitres (the threshold requirement, section 17D WIA91)

the premises may only be supplied by one licensee (but may also be supplied by one or more water undertakers).

Fit and proper person: For the purpose of making an access agreement, a person or party will not be deemed fit and proper if there are any relevant convictions, concerns over technical ability, or insufficient financial resources available.

Fluoridation: Application of fluoride to drinking water at the request of Strategic Health Authorities as a preventative measure against dental decay.

Groundwater: For the purposes of an access agreement groundwater is defined as water abstracted directly from an aquifer by means of a well, borehole or spring.

Guaranteed Standards Scheme (GSS): A scheme that lays down the minimum guaranteed standards of service that water companies have to deliver. Water companies have to pay compensation to customers if they fail to meet these standards.

Hardness: Characteristics of waters containing dissolved calcium and magnesium salts.

HSE: Health and Safety Executive, a government agency responsible for administering all regulations pertaining to health and safety and public security.

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Instrument of Appointment: The water (and sewerage) companies operate under Instruments of Appointment, granted by the then Secretaries of State for the Environment and for Wales, or by the Director, to provide water and sewerage services in England and Wales. The Instrument of Appointment imposes conditions on the companies, which the Director is required to enforce.

Interruptible supply points: These are supply points where a continuous water supply is not necessary.

Leakage: The loss of water from the supply network which escapes other than through a controlled action.

Licensee: A company holding either a retail licence or a combined licence.

Major Emergency Procedures: The Major Emergency Procedures are evoked when the situation or the number of people affected is in excess of those which can be dealt with by the Standard Emergency Procedures.

Mandatory parameters: Levels of chemical or biological indicators that must be measured by law. Examples for drinking water are E coli, nitrates, chlorides.

Microbiological parameters: Levels of bacteria for example E coli, coliforms, enterococci, whose presence indicate that the water may be polluted and therefore should not be used as drinking water.

Non-potable water: Water which is not intended for domestic or food production purposes.

Outage: A temporary loss of water output due to planned or unplanned events.

Pathogen: An organism which is capable of producing disease.

Point of entry: The point at which treated water enters the supply system as defined by the isolation valve provided by the primary undertaker.

Point of exit: The point at which treated water leaves the supply system. In general this will be either to specific premises or to the supply system of an adjoining water company.

Potable: Water for domestic and food production purposes which is wholesome at the time of supply. This is defined in section 68 of the WIA91 and section 4 of the Water Supply (Water Quality) Regulations.

Primary water undertaker: For the purposes of section 66A WIA91 (wholesale water supply by primary water undertaker) and section 66C WIA91 (wholesale water supply by secondary water undertaker), a water undertaker is the primary water undertaker if the undertaker’s supply system is to be used for the purposes of making the supply to the premises of the licensee’s customer.

Priority supply points: Supply points as specified by Defra.

Rechlorination: Usually applied to injection of chlorine to drinking water in the distribution system after it has left the treatment works; often used to boost chlorine levels at a service reservoir.

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Reconciliation process: The balancing of actual demand against actual water supplied into the supply system and the associated financial implications.

Regulatory Compliance Sampling Programme: This is the annual programme of drinking water sampling which the Water Companies must undertake to comply with the requirements of the Water Supply (Water Quality) Regulations 2000 (for England) and 2001 (for Wales) and subsequent amendments.

Retail authorisation: An authorisation to a company to use a water undertaker’s supply system for the purpose of supplying water to the eligible premises of customers of the company (section 17A(2) of the WIA91).

Retail Licence: A Water Supply Licence giving the holder the Retail Authorisation, entitling the holder to purchase wholesale a supply of water from the water undertaker and to supply it retail to a customer’s eligible premises (section 17A(4) of the WIA91).

Secondary water undertaker: A water undertaker other than the relevant primary water undertaker (section 66C(1)(a)(I) WIA91).

Security of supply: The extent to which water supplies to customers are reliable and not subject to possible restrictions because of a lack of rainfall over a period of time.

Service reservoirs: Any reservoir, statutory or otherwise, which is used to store treated drinking water.

Sewerage undertaker: A company appointed under the WIA91 to provide sewerage services in respect of a geographical area of England and Wales.

Special Consumers: As defined in condition of appointment R section (8)(6) and Standard Licence Condition 5.

Standard Emergency Procedure: These are a set of procedures for dealing with an emergency. The full or partial implementation of the procedures is dependant on the degree of seriousness of the emergency.

Supplementary Authorisation: An authorisation to a company to introduce water into a water undertaker's supply system for the purpose of making a retail supply of water to a customer.

Supply system: Any water mains and other pipes used for the purposes of conveying water from a water undertaker’s treatment works to customers’ premises and any water mains and other pipes used to convey non-domestic water from any source to premises that are not connected directly or indirectly to any water mains or pipes connected to those treatment works. This term is defined in section 17B(5) of the WIA91.

Supply system balancing: The process of matching the water-in against the water-out from the supply system.

Telemetry: The technology for automatically measuring and transmitting data by radio or other means from remote sources to receiving stations.

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Treated water: Water of a suitable quality for input to the treated water distribution system and which results in satisfactory DWI compliance at the customer’s tap.

Treated water quality monitoring: Regular sampling and analysis of untreated and treated water. Examples include daily measurement of free chlorine at treatment works or annual sampling for mercury at customers’ taps.

Treatment works: Works where raw water from rivers or reservoirs is treated to produce drinking water. Treatment typically includes coagulation, filtration and disinfection.

Trihalomethanes: A group of chemicals produced by the reaction of chlorine with natural organic chemicals present in the raw water.

Turbidity: A measure of the optical clarity of water.

UKWIR: UK Water Industry Research Limited.

Ultra-violet disinfection: Inactivation of microbiological organisms by ultraviolet radiation.

Untreated water: Raw water not of a suitable quality to enter the supply system.

Water Fittings Regulations: The Water Supply (Water Fittings) Regulations 1999. These Regulations replaced the Water Bylaws in England and Wales and are largely enforced by the water undertakers.

Water Resources Management Plan (WRMP): A water undertaker’s long term strategic plan for water resource development in its area (see section 37A WIA91).

Water Supply Licence: A licence granted to a company giving it the Retail Authorisation, or both the Retail Authorisation and the Supplementary Authorisation.

Water Supply (Water Quality) Regulations: The Water Supply (Water Quality) Regulations, SI 2000 No 3184, amended by SI 2001 No 2885, which apply to water undertakers whose area of supply is wholly or mainly in England; The Water Supply (Water Quality) Regulations 2001, SI 2001 No 3911, which apply to water undertakers whose area of supply is wholly or mainly in Wales. These Regulations specify the standards used to define wholesomeness of drinking water, the level of monitoring required, treatment requirements, reporting requirements and also specify the requirements for using approved substances and products. The DWI enforces these Regulations.

Water undertaker: A company appointed under the WIA91 to provide water services to a defined geographic area and which owns the supply system and other infrastructure.

Wholesale supplies: Supply of water to a licensee by a water undertaker for the purposes of retail by the licensee to its customer’s premises.

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Appendices

A Confidentiality agreement *

B Application fees

C Water quality information

D Indicative information requirements for combined supplies

E Initial application form for a combined supply *

F Common contract for wholesale supply *

* Note – these items are available separately on the BW website in Word format

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Appendix A

Confidentiality agreement

THIS AGREEMENT is made this day of 20[ ] BETWEEN Bournemouth Water Ltd whose Registered Office is George Jessel House, Francis Avenue, Bournemouth, Dorset BH11 8NX and [Licensee] whose Registered Office is [ ].

WHEREAS Bournemouth Water Ltd (BW) and [Licensee] (“the Parties” and individually “a Party”) for their mutual benefit may have exchanged and wish further to exchange certain information of a confidential nature and wish to protect such information in the manner set out in this Agreement.

IT IS HEREBY AGREED AS FOLLOWS:

1 Definitions

For the purposes of this Agreement the following expressions shall have the following meanings:

(a) “Authorised Representative”

shall mean any employee, director, officer or professional and financial advisor of the receiving Party;

(b) “Confidential Information”

shall mean any and all confidential, commercial, financial, marketing, technical, environmental information governed by the EIR or other information or data of whatever nature relating to the disclosing Party or to the disclosing Party’s business or affairs (including but not limited to this Agreement, data, records, reports, agreements, software, programmes, specifications, know-how, trade secrets, either Party’s or any associated company's organisational structure, contractual arrangements or agreements, technical documentation, finances, properties, costs, methods of doing business, personnel, legal affairs, plans, customers, products or processes, and other information concerning the Project, information regarding BW’s actual or proposed network access code or any charges for any network access or, in the case of [Licensee], information relating to its actual or proposed customers and borehole or other resource locations, whether or not identified as confidential) in any form or medium whether disclosed in writing, orally or by any other means to one Party by the disclosing Party or by a third party on behalf of the disclosing Party whether before or after the date of this Agreement together with any reproductions of such information in any form or medium or any part(s) of such information;

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(c) “Exempted Information”

shall mean any information or category of information, document, report, contract or other material containing information relevant to this Agreement that has been designated by the mutual agreement of the Parties as potentially falling within a EIR Exemption;

(d) “EIR” shall mean the Environmental Information Regulations 2004 which shall include any amendment, modification, consolidation, re-enactment or replacement of the same;

(e) “EIR Exemption”

shall mean any applicable exemption to the EIR;

(f) “Project” shall mean any discussions and negotiations between or within the Parties concerning or in connection with the proposal set out in the Schedule attached hereto.

2 Confidentiality obligations

2.1 Subject to clause 2.2 in consideration of the mutual exchange and disclosure of Confidential Information each Party undertakes in relation to the Confidential Information disclosed to it by the other Party either

for [7] years from the date of this Agreement, or

until such time as the Parties agree that this Agreement shall be superseded by other confidentiality obligations contained in a separate written agreement terminating this Agreement:-

to treat all and any of such Confidential Information as confidential and secret and not use any of such Confidential Information for any purpose other than the purpose of evaluating such Confidential Information in connection with the Project;

to take all reasonable steps to protect the confidentiality of such Confidential Information and to prevent disclosure of same to unauthorised persons;

not to disclose any of such Confidential Information in whole or in part to any third party without the prior written consent of the other Party save to its Authorised Representatives who need to know the same for the purpose of evaluating such Confidential Information in connection with the Project;

to take all reasonable steps to ensure that each Authorised Representative to whom it discloses such Confidential Information is made aware of the provisions of this Agreement and observes the obligations contained herein.

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2.2 The obligations of confidentiality and the prohibitions against use undertaken in this Agreement by the receiving Party shall not apply to any Confidential Information which:-

is or subsequently comes into the public domain otherwise than as a result of any breach of this Agreement by the receiving Party or any of its Authorised Representatives;

is already known to the receiving Party prior to disclosure which prior knowledge the receiving Party can clearly demonstrate with written material;

becomes known to the receiving Party by disclosure from a third party who has a lawful right to receive and disclose the Confidential Information;

is required to be disclosed by law or by any regulatory authority provided that the receiving Party informs the disclosing Party in advance of the circumstances of the disclosure and exactly what is to be disclosed and uses all reasonable endeavours to obtain confidentiality undertakings from the recipients in respect of the Confidential Information disclosed; or

the disclosing Party agrees in writing may be disclosed.

3 EIR

3.1 The Parties recognise that they are subject to legal duties, which may require the release of information under the EIR and may be under an obligation to provide information on request. Such information may include matters relating to, arising out of or under this Agreement in any way.

3.2 The Parties recognise that each request for information must be considered individually.

3.3 Notwithstanding anything in this Agreement to the contrary including, but without limitation, the general obligation of confidentiality imposed on the Parties pursuant to Clause 2, in the event that either Party (“the Relevant Party”) receives a request for information under the EIR, the Relevant Party shall be entitled to disclose all information and documentation (in whatever form) as necessary to respond to that request in accordance with the EIR PROVIDED ALWAYS that where the information requested is information that has been given to the Relevant Party by the other Party (”the Other Party”), the Relevant Party:

shall use reasonable endeavours to consult the Other Party as soon as reasonably practicable and the Other Party agrees to respond to such consultation within 7 days of receiving the consultation notice;

shall not disclose any information that the Parties have agreed is Exempted Information and shall rely on the EIR Exemption, at the Other Party’s request and cost, and use reasonable endeavours to ensure that the Exempted Information remains withheld, including the lodging of any appeal against a decision by the Information Commissioner in relation to the request.

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3.4 In the event that the Relevant Party incurs any costs, including but not limited to external legal costs, in seeking to maintain the withholding of the information, including but not limited to responding to information notices or lodging appeals against a decision of the Information Commissioner in relation to disclosure, the Other Party shall indemnify the Relevant Party, save that the Relevant Party shall use reasonable endeavours to consult the Other Party before incurring any such costs and comply with all reasonable requirements of the Other Party before incurring such costs and shall permit the Other Party to take over the sole conduct of the matter if it so chooses.

4 Intellectual Property

4.1 Nothing in this Agreement shall be construed to grant either Party any right or licence any patent, know-how, trademark, copyright or other intellectual property right of the other Party.

5 Return of Information

5.1 Each Party shall within one week of a request from the other Party in writing give to the other Party or (at the other Party’s discretion) itself destroy all the Confidential Information of the other Party and all copies thereof in its possession, custody or control including for the avoidance of doubt Confidential Information contained within computers, word processors or other devices (including computer discs or other information storage equipment).

5.2 The return of Confidential Information shall not release either Party from its other obligations under this Agreement.

6 No Representation, Warranty or Licence

6.1 No representation or warranty is made or given by either Party to the other as to the accuracy or completeness of the Confidential Information disclosed by it to the other or as the reasonableness of any assumptions on which the same is based and each of the Parties agrees that neither the disclosing Party nor its Authorised Representatives shall have any liability to it (or its Authorised Representatives) resulting from the use of such Confidential Information save as expressly agreed in writing.

6.2 This Agreement only governs the rights and obligations of the Parties with respect to the Confidential Information disclosed and does not purport to be a licence to use such Information for any purpose except for the Project. Should the Parties enter into any licence or other similar agreements in the future such agreements shall supersede this Agreement and shall contain similar provisions for the protection of the Parties' Confidential Information.

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7 Reference to the Parties

7.1 Save as required by law or any regulatory body, neither of the Parties shall make any announcement, public statements or press releases of any kind in relation to the Confidential Information disclosed to it by the other of the Project nor shall they mention the name of the other Party in connection with the Project or disclose the existence of the Project or the existence of this Agreement without the prior written consent of the other Party.

8 No Contract

8.1 No documents or information made available to the one Party or its Authorised Representatives by the other will constitute an offer or invitation or form the basis of any contract.

9 Notices

9.1 All notices under this Agreement shall be in writing, sent by facsimile or first class registered or recorded delivery post to the Party being served to its facsimile number mentioned below or at its address specified above or at such other facsimile number or address of which such Party shall have given notice as aforesaid, and marked for the attention of the person holding the position of that Party’s signatory to this Agreement. The date of service shall be deemed to be the next business day following the day on which the notice was posted or immediately upon receipt of the fax confirmation if sent by facsimile.

9.2 Facsimile number of BW: 01202 597006

9.3 Facsimile number of [Licensee]:

10 Consequences of Breach

10.1 In consideration of either Party disclosing the Confidential Information to the other the receiving Party further agrees to indemnify the disclosing Party against any breach of its obligations under any clause of this Agreement.

10.2 Each Party recognises that in addition to all other remedies that the disclosing Party may be entitled to as a matter of law the disclosing Party shall be entitled to seek specific performance and any other form of equitable relief to enforce this Agreement. The receiving Party acknowledges that damages may be insufficient remedy for any breach of this Agreement.

10.3 No proof of special damages shall be necessary for the enforcement of this Agreement.

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11 No Waiver

11.1 No failure or delay by either Party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any further exercise thereof or the exercise of any right, power or privilege hereunder or otherwise.

12 Variation

12.1 No variation or amendment to this Agreement shall be effective unless in writing and signed by authorised signatories for the Parties.

13 Non-assignment

13.1 This Agreement is personal to the Parties and shall not be assigned or otherwise transferred in whole or in part by either Party without prior written consent of the other Party.

14 Entire Agreement

14.1 This Agreement sets out the entire agreement between the Parties in respect of the Confidential Information disclosed by either Party to the other and supersedes all previous understandings and undertakings in such respect whether oral or in writing, and no representation, undertaking or promise shall be taken to have been given or be implied from anything said or written in negotiations between the Parties prior to this Agreement except as set out in this Agreement.

15 Costs

15.1 Each Party shall bear its own legal and other costs incurred in relation to the preparation and completion of this Agreement.

16 Severance

16.1 Each provision of this Agreement is severable and distinct from the others. The Parties intend that every such provision shall be and remain valid and enforceable to the fullest extent permitted by law. If any such provision is or at any time becomes to any extent invalid, illegal or unenforceable under any enactment or rule of law it shall to that extent be deemed not to form part of this Agreement but it and all the other provisions of this Agreement shall continue in full force and effect and their validity, legality and enforceability shall not therefore be affected or impaired.

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17 Governing Law

17.1 The construction, validity and performance of this Agreement shall be governed all times by English Law and the English Courts shall have non-exclusive jurisdiction in respect thereof.

AS WITNESS the hands of the Parties hereto and their duly authorised representatives the day and year first before written

SIGNED on behalf of Bournemouth Water Ltd

(Signature)

(Position)

(Date)

SIGNED on behalf of [Licensee]

(Signature)

(Position)

(Date)

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The Schedule (if required)

[Define the Project]

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Appendix B

Application fees

In accordance with Ofwat’s guidance on access codes (September 2011), BW cannot recover from a licensee any costs of processing an application for access, including any costs for feasibility studies.

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Appendix C

Water quality informationGeneral requirement

BW expects any licensee to be fully conversant with its statutory obligations under all the applicable legislation in relation to public water supply. This requirement includes not only Statutory Instruments but also Information Letters and specific guidance given from time to time by the DWI.

BW expects any licensee to be diligent at all times in safeguarding the safety of the public water supply.

Any licensee must product a Water Safety Plan identifying all hazards, risks and mitigations in relation to all aspects of their involvement in the supply chain.

Water quality input specification

It is of paramount importance that the introduction of water by a licensee does not detrimentally affect the quality of water supplied to customers. Any such detrimental effect will almost certainly give rise to a refusal of access.

The assessment of water quality will be a major factor in the feasibility study for a combined supply. The feasibility study will include a detailed assessment of whether water entering the distribution network will be of sufficient quality to enable BW to meet its obligations under the Water Supply (Water Quality) Regulations at customers’ taps. Licensees must be prepared to provide adequate and sufficient water quality sample results to enable this assessment to be made, including an assessment of the variability in quality. Licensees must provide details of the quality of both raw and treated water (if applicable) at the application stage.

It is not practical to provide a generalised requirement for the acceptability of water quality. The assessment of water quality will depend on the circumstances of the application. For example, any change to the direction of flow may have an impact on the quality of water delivered, and the mixing of different waters may also need to be taken into account.

In general terms, the licensee should expect that BW will require that water from the licensee’s source will be treated to the same standard and quality as BW treats water for input to that part of the network. This applies in particular to the disinfection process, where taste and odour at customers’ taps may be affected. For the information of licensees, BW uses chloramination as its disinfection process, and this will be taken into account in the assessment of compatibility of water quality.

Water quality inputs

In line with DWI and WHO policy in relation to water quality control, BW expects to see any licensee following the Water Safety Plan approach to its operation. This plan must include a detailed risk assessment of all identified hazards that arise in the source or catchment, a plan of how these risks are controlled, and also how it can be demonstrated that the control measures are appropriate and effective.

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Statutory Requirements

Any surface-derived sources must have suitable and appropriately effective treatment in relation to the quality of the source. The Water Safety Plan should identify all hazards and high risk contaminants along with the treatment used in order to control them. The Water Safety Plan should also identify what validations are in place to demonstrate the control measures are effective. An indication of appropriate treatment for source quality can be found under the Surface Water Classification Directive (no longer in force).

Water supply parameters and applicable limits are specified in the Water Supply (Water Quality) Regulations 2000 and amendments. These are summarised in Table 8. All water received from a licensee would be expected to comply with sufficient headroom so as not to lead to any breaches of the standard when in supply. The shaded area of Table 8 should be completed by the licensee and returned to BW.

Any high risk parameters that have been identified in the Water Safety Plan that are not specifically mentioned in the Regulations must be sufficiently monitored and be at a level considered not to be of health significance or of any aesthetic concern.

Additional Requirements

Any input supply that could mix with water supplied by BW will be required to be chloraminated, unless prior trials confirm there is no issue with chlorine control and taste.

Any input supply that could mix with water supplied by BW must be of such a nature that any mixing will not give rise to quality or aesthetic problems.

Water quality sampling and monitoring

Detailed regulatory sampling requirements are laid out in the Regulations, and are summarised here in Table 9.

In addition to this, sufficient sampling of raw, part-treated and final water must be carried out on a risk-based approach depending on the criticality of any parameter and the robustness of the control measure. Each case will be specific to circumstances and any particular issues should be apparent from the Water Safety Plan.

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Further information

This appendix contains links to information on the DWI website, which is the main source of definitive guidance on the water quality regulations that licensees are required to observe. The DWI website contains the following key documents:

DWI Information Letter 13/04 Common Carriage: Guidance on the Drinking Water Quality Aspects www.dwi.defra.gov.uk

DWI Guidance on the Water Supply (Water Quality) Regulations 2000www.dwi.defra.gov.uk

DWI Guidance on the Notification of Events www.dwi.defra.gov.uk

DWI Guidance on the Water Undertakers (Information) Direction 2009 www.dwi.defra.gov.uk

Applicants for combined supply with an existing source should provide water quality information in accordance with the Water Supply (Water Quality) Regulations www.dwi.defra.gov.uk

Applicants for combined supply with a new source should provide water quality information in accordance with regulation 15 of the Water Supply (Water Quality) Regulations www.dwi.defra.gov.uk

The Water Supply (Water Quality) Regulations 2000 (Statutory Instrument No 3184) can be accessed as follows www.dwi.defra.gov.uk

Updates and amendments to the Water Supply (Water Quality) Regulations can be accessed as follows, with the list including particular updates dating from September 2007 www.dwi.defra.gov.uk

For the operational monitoring of a combined supply, licensees should provide water quality information in accordance with the Water Supply (Water Quality) Regulationswww.dwi.defra.gov.uk

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Applicants with either an existing or a new source are further reminded that the assessment of water quality will be a major factor in the feasibility study for a combined supply. The feasibility study will include a detailed assessment of whether water entering the distribution network will be of sufficient quality to enable BW to meet its obligations under the Water Supply (Water Quality) Regulations at customers’ taps. Licensees must be prepared to provide adequate and sufficient water quality sample results to enable this assessment to be made.

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Table 8 – Water quality information – Regulatory parameters Date Period

Parameter Units PCV Nr of tests Nr. of tests Concentrationsin period >PCV Minimum Mean Maximum

Colour Mg/l Pt/Co scale 20Turbidity FTU (Formazin turbidity units) 1Odour Dilution number 3 at 25°CTaste Dilution number 3 at 25°CHydrogen ion pH 10 (6.5 min)Sulphate mg SO4/l 250Sodium mg Na/l 200Nitrate mg NO3/l 50Nitrite mg NO2/l 0.1Ammonium mg NH4/l 0.5TOC (Total organic carbon) mg C/l  Aluminium µg Al/l 200Iron µg Fe/l 200Manganese µg Mn/l 50Copper mg Cu/l 2Fluoride µg F/l 1500Arsenic µg As/l 10Cadmium µg Cd/l 5Cyanide µg CN/l 50Chromium µg Cr/l 50Mercury µg Hg/l 1Nickel µg Ni/l 20Lead µg Pb/l 25Antimony µg Sb/l 5Selenium µg Se/l 10Total Pesticides µg/l 0.5

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Individual Pesticides (list all) µg/l 0.1Polycyclic Aromatic Hydrocarbons (PAH) µg/l 0.1Total coliforms Number/100 ml 0Escherichia coli Number/100 ml 0Enterococci Number/100 ml 0Clostridium perfringens Number/100 ml 0Colony counts Number/1 ml at 22°C or 37°C n/a Conductivity µS/cm 2500 at 20°C Chloride mg Cl/l 250Boron mg B/l 1Benzo 3,4 pyrene ug/l 0.01Tetrachloromethane µg/l 3Acrylamide µg/l 0.1Benzene µg/l 1Bromate µg/l BrO3/l 101,2 dichloroethane µg/l 3Epichlorohydrin µg/l 0.1Aldrin/Dieldrin/Heptachlor/Heptachlor epoxide µg/l 0.03Tetrachloroethene and Trichloroethene µg/l 10 (sum of 2)Total Trihalomethanes: µg/l 100Vinyl chloride µg/l 0.5Total indicative dose    Free Chlorine mg Cl2/l n/a Total Chlorine mg Cl2/l n/a Additional ParametersTotal Dissolved Solids mg/l  Total Hardness mg/l  Alkalinity mg/l  

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Table 9 – Water quality information - Annual sampling frequencies

Item Substances and parameters Volume of water supplied m3/d Reduced Standard1 E. Coli <20 42 Coliform bacteria 20 - 1,999 12 523 Colony counts 2,000 - 5,999 52 1044 Nitrite (ii) 6,000 - 11,999 104 2085 Residual disinfectant ≥12,000 104 3656 Turbidity     Subject to check monitoring     7 Clostridium perfringens(i) <20 28 Conductivity 20  -  999 2 4  1,000  -  1,999 6 12          2,000  -  5,999 12 24          6,000  -  9,999 18 36          10,000  -  15,999 26 52          16,000  -  32,999 52 104          33,000  -  49,999 78 156          50,000  -  67,999 104 208          68,000  -  84,999 130 260          85,000  -  101,999 156 312          102,000  - 119,999 183 365          120,000  -  241,999 365 730          242,000  -  484,999 730 1,460          485,000  -  728,999 1,095 2,190Subject to audit monitoring     9 Benzene     10 Boron     11 Bromate (iv)     12 Cyanide     13 1,2 dichloroethane <20 114 Fluoride 20 - 999 415 Mercury 1,000 - 49,999 816 Nitrite (iii) 50,000 - 89,999 1217 Pesticides and Related products 90,000 - 299,999 2418 Trichloroethene+Tetrachloroethene 300,000 - 649,000 3619 Tetrachloromethane ≥650,000 4820 Chloride  21 Sulphate  22 Total organic carbon     23 Tritium     24 Gross alpha (v)     25 Gross beta (v)     

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Notes: The table is relevant to sampling frequencies at treatment works or supply points. Sampling is at treatment works for the substances and parameters shown in column (1) of the Table as items 1 to 6 and at supply points for the other substances and parameters, except nitrite, subject to notes (ii) and (iii).(i) Check monitoring is required only in respect of surface waters (see regulation 6(2) and Table 1 in Schedule 3).(ii) Sampling at treatment works when chloramination is practised.(iii) Sampling at treatment works when chloramination is not practised.(iv) Audit monitoring at supply points is required only where sodium hypochlorite is not added after water has left the treatment works. In other circumstances, audit monitoring is required in water supply zones.(v) To monitor for total indicative dose (for radioactivity).

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Appendix D

Indicative information requirements for combined supplies

1 Is the supply conditional upon obtaining other permissions, such as access to another company’s network, the granting of a water supply licence or an abstraction licence, or agreement of any contract

2 Detailed information about the proposed source of water, including type, precise location, existing or proposed facilities, monitoring mechanisms, asset condition and maintenance provisions, pollution protection

3 Details of EA abstraction licence or licence application

4 Technical assessment of deployable output and reliability

5 Water quality sampling results (pre-treatment), including cryptosporidium, together with statement of sampling regime and status of laboratory used for analysis

6 Detailed information about the treatment process, including details of treatability, output quality standards, variability of output quality

7 Details of process control, instrumentation, monitoring of treatment status and parameters, failsafe mechanisms

8 Outline of operations and maintenance manual for the treatment facility

9 Water quality sampling results (stage and post-treatment), including cryptosporidium, together with statement of sampling regime and status of laboratory used for analysis

10 Full and detailed risk assessment of all relevant aspects of source and treatment facilities

11 Assessment of the risks from cryptosporidium, of a standard that would be accepted by the DWI, together with a statement of the conclusions drawn and any risk mitigation measures proposed

12 Proposed point of entry to BW network (if known), or sufficient information to enable identification of the likely optimum point

13 Details of any pumping, flow control or pressure control devices proposed to manage entry to the BW network (including pump characteristic curves for any pumps to be connected directly to the network)

14 Proposals for monitoring of water quality at the point of entry to the BW network

15 Proposed point of exit from BW network

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16 Demand requirements of customer, including annual volume, average and peak daily flows, peak week and peak hourly flows (and any likely rapid flow changes)

17 Any customer requirements relevant to BW, such as storage or pressure

18 Metering proposals at points of entry to and exit from BW network

19 Other relevant requirements (such as fire-fighting)

20 Is the licensee proposing to run a deficit between the entry point and exit point volumes, such that BW provides top-up supplies

21 Proposals for other services requested from BW (such as maintenance, sampling, meter-reading)

Notes:

This list is not exhaustive. Some items may not be relevant to a particular application. Other applications may require additional information, depending on the circumstances. Licensees should be prepared to provide any and all information necessary for BW to undertake a full feasibility study for that application.

It is not practical to provide a generalised requirement for water quality. The BW feasibility study will include a detailed assessment of whether water entering the distribution network will be of sufficient quality to enable BW to meet its obligations under the Water Supply (Water Quality) Regulations at customers’ taps. Licensees should be prepared to provide adequate and sufficient water quality sample results to enable this assessment to be made, including an assessment of the variability of water quality.

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Appendix E

Initial application form for a combined supply

The applicant should complete and submit this form in order to initiate the preparation of a combined supply agreement. A combined supply agreement covers all the terms and conditions of the shared use of the BW network by the applicant, including customer-specific and site-specific arrangements.

Applicant details - Company name

- Address

Contact details - Name and position

- Telephone number

- Fax number

- Email address

Licence details - Type of licence

- Licence number

Initial application (only include outline information at this stage) - Type of source water

- Proposed treatment

- Proposed point of entry

- Proposed point of exit

- Annual volume

Form submitted - Date

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Notes:

1 Submission of form

This form should be submitted to BW as follows:

either by post to:

Bob TaylorManaging DirectorBournemouth WaterGeorge Jessel HouseFrancis AvenueBournemouthDorset BH11 8NX

or by e-mail to:

economicregulation@bournemouthwater.co.uk

2 Initial meeting

On receiving this form, properly completed, BW will contact the applicant to arrange an initial meeting at the BW office in Bournemouth. This initial meeting is intended to clarify the understanding of each party about the other’s plans and requirements. The initial meeting is recommended but is not mandatory. It will normally take place within 10 working days of BW receiving this form.

3 Next steps

The next steps in applying for a combined supply, including the confidentiality agreement, customer-related information and the information requirements for the feasibility study, are set out in section 2 and appendix D of the BW access code.

4 Timescale

The applicant can expect to receive feedback from BW on the initial application within 20 working days of BW receiving all the necessary information. Other important features of the timescale of the application process are set out in the BW access code.

5 Application fees

The applicant should refer to the access code for up-to-date details on application fees.

END OF FORM

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Appendix F

Common contract for wholesale supply

The licensee is entitled to use the common contract as the access agreement between them and BW unless it wishes to negotiate a supply on different terms.

If a licensee wishes to use the common contract as the access agreement it should submit the following to BW:

a copy of the customer’s consent to switch supplier

a completed copy of the common contract

The common contract and customer data sheet are provided below.

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Common contract

ContentsClause Page

1 Definitions and Interpretation.........................................................................1242 Water Supply......................................................................................................1253 Term...................................................................................................................1264 Warranties..........................................................................................................1265 Compliance with Relevant Laws.........................................................................1266 Supply System....................................................................................................1277 Meters.................................................................................................................1278 Supply Interruptions............................................................................................1279 Information and Notification of Supply Interruptions and Supply Changes........12810 Special Consumers............................................................................................12811 Unmeasured Takes............................................................................................12812 Licensee Equipment...........................................................................................12913 Charges and Payment........................................................................................12914 Change Control Process....................................................................................12915 Adding Premises................................................................................................13016 Switching Premises............................................................................................13017 Termination.........................................................................................................13118 Exit Arrangements..............................................................................................13119 Force Majeure Event..........................................................................................13220 Dispute Resolution.............................................................................................13321 Limitation of Liability...........................................................................................13422 Intellectual Property Rights.................................................................................13423 Assignment.........................................................................................................13524 Notices................................................................................................................13525 Relationship of the Parties..................................................................................13626 Third Party Rights...............................................................................................13627 Entire Agreement................................................................................................13628 Survival of Rights................................................................................................13729 Waiver.................................................................................................................13730 Rights Cumulative..............................................................................................13731 Severance...........................................................................................................13832 Counterparts.......................................................................................................13833 Governing Law...................................................................................................138

Schedule1 Definitions...........................................................................................................1392 Charges..............................................................................................................1443 Change Control Process....................................................................................148

AppendixData Sheet

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This Contract is made on 20[ ] Between

(1) [ ], a company incorporated in England and Wales (No. [ ]) whose registered office is at [ ] (the Undertaker); and

(2) [ ], a company incorporated in England and Wales (No. [ ]) whose registered office is at [ ] (the Licensee).

Whereas

(A) The Undertaker holds an Instrument of Appointment under the Act and the Licensee holds a Water Supply Licence under the Act.

(B) Where the Licensee requests a supply of water under section 66A of the Act and the Undertaker is required by the Act to make such supply, the Undertaker shall, unless the Licensee wishes to negotiate a supply on different terms, offer the supply to the Licensee on the terms set out in this Contract and in accordance with the Operational Code.

(C) The Undertaker and the Licensee shall enter into a separate Contract for each Customer. Where a Customer has multiple Premises in the Undertaker’s Area of Appointment, one Contract may govern all of those Premises.

It is agreed

1 Definitions and Interpretation

1.1 In this Contract the definitions in schedule (Definitions) shall apply.

1.2 In this Contract:

(a) the recitals, schedules and appendix form part of this Contract and references to this Contract include the recitals, schedules and appendix;

(b) references to ‘recitals’, ‘clauses’, ‘schedules’ and ‘appendix’ are to recitals and clauses of and schedules and the appendix to this Contract; references in a schedule or appendix to paragraphs are to the paragraphs of that schedule or appendix; and a reference to a clause or paragraph number is, unless otherwise specified, a reference to all its sub-clauses or sub-paragraphs;

(c) words imparting a gender include every gender and references to the singular include the plural and vice versa;

(d) words denoting persons include individuals and bodies corporate, partnerships, unincorporated associations and other bodies (in each case, wherever resident and for whatever purpose) and vice versa;

(e) references to this Contract or any other document are to this Contract or that document as in force for the time being and as amended, supplemented, varied, modified, renewed, replaced or extended from time to time in accordance with the requirements of this Contract or that document (as the case may be) including by way of the operation of clause 14.2;

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(f) a reference to any body is:

(i) if that body is replaced by another organisation, deemed to refer to that replacement organisation; and

(ii) if that body ceases to exist, deemed to refer to that organisation which most substantially serves the same purposes as the original body;

(g) a reference to a statute or statutory provision shall, unless otherwise stated, be construed as including a reference to any subordinate legislation (as defined by section 21(1) of the Interpretation Act 1978) made from time to time under the statute or statutory provision whether before or after the Commencement Date;

(h) a reference to a statute, statutory provision or any subordinate legislation shall, unless otherwise stated, be construed as including a reference to that statute, statutory provision or subordinate legislation as in force at the Commencement Date and as from time to time modified or consolidated, superseded, re-enacted or replaced (whether with or without modification) after the Commencement Date;

(i) references to ‘the Parties’ shall, unless otherwise expressly stated, be construed as references to the Licensee and the Undertaker, and the term ‘Party’ shall be construed accordingly;

(j) references to a party shall, except where the context requires otherwise, include its successors in title and permitted assignees; and

(k) references to words that are defined in the Act shall have the same meaning as in the Act except where the context requires otherwise.

1.3 The headings and contents table in this Contract are for convenience only and do not affect its interpretation.

1.4 In this Contract, the word ‘Premises’ shall be construed in the singular unless the context requires otherwise.

1.5 In this Contract, the words ‘other’, ‘includes’, ‘including’ and ‘for example’ do not limit the generality of any preceding words, and any words which follow them shall not be construed as being limited in scope to the same class as the preceding words where a wider construction is possible.

1.6 In this Contract, the words ‘for the time being’ mean at the relevant time now or in the future unless the context requires otherwise.

2 Water Supply

2.1 The Undertaker agrees to supply water to the Licensee at the Premises specified by the Licensee in the Data Sheet(s) appended to this Contract or otherwise agreed in writing by the Parties in accordance with the terms of this Contract provided that the Undertaker is obliged by the Act (or other Relevant Law) to supply such Premises. If the Undertaker is not obliged by the Act (or other Relevant Law) to supply one (1) or more of the Premises specified by the Licensee, this shall not relieve the Undertaker of the obligation to supply the remainder of the Premises.

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2.2 Subject to clause 8, the Undertaker shall supply water to the Licensee at the Premises that:

(a) is wholesome in accordance with any regulations made pursuant to section 67 of the Act (unless the requirement of the Premises is specified in the Data Sheet to be for non-potable water);

(b) is at a level of constancy and pressure that complies with:

(i) regulation 10 of the Water Supply and Sewerage Services (Customer Service Standards) Regulations 2008 (SI 2008/594); and

(ii) section 65 of the Act in respect of water for domestic purposes or water for fire hydrants that have been notified to the Undertaker by the Licensee or the Customer (either pursuant to this Contract or otherwise).

2.3 The Undertaker shall perform the Transfer of any Premises in accordance with the Customer Transfer Protocol.

2.4 The Water Supply shall be made available to the Customer at the Exit Point(s). Title to the Water Supply shall pass to the Licensee at the Exit Point(s).

3 Term

3.1 This Contract shall commence on the Commencement Date and continue with full force and effect unless and until terminated in accordance with its terms.

3.2 The Water Supply to any Premises shall commence on the relevant Transfer Date.

4 Warranties

4.1 The Undertaker warrants and undertakes on the Commencement Date and for the Term that it holds a valid Instrument of Appointment.

4.2 The Licensee warrants and undertakes on the Commencement Date and for the Term that it holds a valid Water Supply Licence.

4.3 The Licensee warrants that it will only use the water supplied by the Undertaker under the terms of this Contract for the purpose of supplying the Premises.

5 Compliance with Relevant Laws

5.1 The Undertaker warrants for the Term that it will comply with all Relevant Laws.

5.2 The Licensee warrants for the Term that it will comply with all Relevant Laws.

5.3 Nothing in this Contract shall be construed to prevent a Party from discharging any duty or obligation which is required by any Relevant Law.

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6 Supply System

6.1 Nothing in this Contract alters the Undertaker’s ownership of the Supply System or its responsibility to manage and operate the Supply System and this Contract does not confer any responsibilities for ownership, maintenance or other use of the Supply System to the Licensee or the Customer.

6.2 Subject to clauses 8 and 9, nothing in this Contract shall prevent or restrict the Undertaker from altering, amending, expanding, replacing, developing and/or redeveloping its Supply System.

7 Meters

7.1 In respect of any Meter which the Undertaker has installed at the Premises, the Undertaker shall:

(a) maintain or replace the Meter (as appropriate);

(b) perform tests on the operation and accuracy of the Meter if requested by the Licensee;

(c) upsize or downsize the Meter (as appropriate) if requested by the Licensee; and

(d) if the Undertaker is implementing a replacement scheme for meters that includes the type, location or any other feature of the Meter, replace the Meter as part of such scheme.

7.2 In respect of the Undertaker’s obligations under clauses 7.1(b) and 7.1(c), the Undertaker may charge the Licensee provided that such charges are consistent with the Undertaker’s charges to its other customers in comparable circumstances.

7.3 The Undertaker shall perform its obligations under this clause 7 to a standard consistent with that which the Undertaker provides to its own customers of comparable size to the Licensee’s Customer.

8 Supply Interruptions

8.1 Without prejudice to its powers under the Act, the Undertaker may Interrupt the Water Supply to the Premises if:

(a) it is an Interruptible Supply and the Supply Interruption is performed in accordance with any terms set out in the relevant Data Sheet;

(b) the Water Supply is affected by an Emergency Event or any actions to prevent the occurrence or limit the effects of an Emergency Event;

(c) the Water Supply is affected by a Force Majeure Event;

(d) a Drought Order is made which overrides the terms of this Contract;

(e) the Water Supply is affected by a Network Event; or

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(f) the Undertaker is performing Planned Maintenance, Unplanned Maintenance or Emergency Works.

9 Information and Notification of Supply Interruptions and Supply Changes

9.1 Unless the Undertaker has notified the Licensee of a Supply Interruption or a Supply Change under clauses 9.2 to 9.4, the Undertaker shall promptly notify the Licensee and the Customer of the nature or scale of a Supply Interruption or a Supply Change and its estimated duration (provided that such Supply Interruption or Supply Change is material or could reasonably be construed as material).

9.2 Subject to clause 10, if any Planned Maintenance by the Undertaker will or is reasonably likely to cause a Supply Interruption, the Undertaker shall provide the Licensee and the Customer with not less than 48 hours’ prior written notice of such Supply Interruption.

9.3 In respect of any Planned Maintenance, the Undertaker shall, to the extent reasonably practicable, liaise with the Licensee and its Customer (if requested by the Licensee) to assess the impact of the Planned Maintenance on the Customer and the Undertaker shall use reasonable endeavours to minimise or eliminate the Planned Maintenance (or impact thereof) affecting the Customer.

9.4 The Undertaker shall provide the Licensee with information on the Supply System (to the extent that it is applicable to the Licensee’s Customer) that is equivalent in terms of content and timeliness as the Undertaker provides to its Large Users.

10 Special Consumers

10.1 In respect of any Customer (or any person that may be affected by the Water Supply to the Customer) which is designated a Special Consumer:

(a) the Licensee shall notify the Undertaker in the Data Sheet or otherwise of the extent of a Supply Interruption or a Supply Change that can be tolerated without materially increasing the risk of harm to a person or property (Safety Requirements); and

(b) the Undertaker shall take into account the Safety Requirements of the Special Consumer and use its best endeavours to maintain the Water Supply consistent with the Safety Requirements or provide a reasonable alternative Water Supply to the Special Consumer.

11 Unmeasured Takes

11.1 The Parties agree that where an illegal connection is made to the Supply System which results in a third party taking water from the Supply System (an Unmeasured Take):

(a) up to the Meter, such Unmeasured Take shall be for the Undertaker’s account;

(b) at any point from and including the Meter, such Unmeasured Take shall be for the Licensee’s account.

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11.2 Each Party agrees to provide the other with all reasonable assistance in respect of any steps, actions or proceedings against a third party relating to an Unmeasured Take, including disconnecting the illegal connection and seeking compensation.

12 Licensee Equipment

12.1 The Licensee may install Licensee Equipment on or after the Exit Point(s) (including on the Meter, notwithstanding that such Meter may be owned or controlled by the Undertaker).

12.2 In respect of any proposed installation of Licensee Equipment on a Meter or other equipment owned or controlled by the Undertaker, the Licensee shall give the Undertaker not less than five (5) Working Days’ written notice of its proposed installation. Such notice shall specify the nature of the Licensee Equipment to be installed and the proposed installation date.

12.3 In respect of any Licensee Equipment installed on a Meter or other equipment owned or controlled by the Undertaker, the Licensee shall ensure that such Licensee Equipment is properly maintained and the Undertaker grants the Licensee such rights of access as are necessary to perform such maintenance or replacement.

12.4 Any Licensee Equipment installed on or after the Exit Point(s) shall not form part of the Supply System.

12.5 Subject to clause 21.2, in the event that the Licensee suffers or incurs any Losses in relation to the Licensee Equipment which is caused by the Undertaker’s act or omission, the Undertaker shall indemnify the Licensee in respect of such Losses provided that such Losses were directly caused by the Undertaker’s act or omission, such Losses were reasonably foreseeable when the Licensee Equipment was installed and the Licensee made reasonable endeavours to mitigate such Losses.

12.6 Subject to clause 21.2, in the event that the Undertaker suffers or incurs any Losses in relation to the Supply System which is caused by the Licensee Equipment, the Licensee shall indemnify the Undertaker in respect of such Losses provided that such Losses were directly caused by the Licensee Equipment, such Losses were reasonably foreseeable when the Licensee Equipment was installed and the Undertaker made reasonable endeavours to mitigate such Losses.

13 Charges and Payment

13.1 In consideration of the provision of the Water Supply under this Contract, the Licensee shall pay the Undertaker the Charges in accordance with the provisions of schedule 2.

14 Change Control Process

14.1 Subject to clause 14.2, no variation of this Contract shall have effect unless it is made in accordance with schedule .

14.2 If Ofwat varies the Guidance then, insofar as such variation relates to the terms of the Common Contract, either Party may request that the terms of this Contract be varied in the same manner (consent to which shall not be unreasonably withheld or

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delayed). If the Undertaker and the Licensee are unable to agree the variation, either Party may treat the failure to reach agreement as a Dispute and invoke the Dispute Resolution procedure set out at clause 20.

15 Adding Premises

15.1 If the Licensee requires any Additional Premises to be supplied by the Undertaker, the Licensee shall notify the Undertaker of such requirement in writing. On receipt of such notice, the Undertaker and the Licensee shall comply with the requirements of the Operational Code and the Customer Transfer Protocol (as applicable) in respect of transferring Additional Premises to the Licensee.

15.2 Any Additional Premises shall, on the relevant Transfer Date, become Premises for the purposes of this Contract.

15.3 The Undertaker shall supply the Additional Premises unless it is not required to do so under section 66A of the Act.

16 Switching Premises

16.1 Subject to clause 17.1, if the Licensee requires the Undertaker to cease supply to any Premises supplied under this Contract it shall notify the Undertaker in writing (a Switch Notice) of:

(a) the relevant Premises; and

(b) the planned Switch Date.

16.2 The Undertaker and the Licensee shall perform the Switch of any Premises in accordance with the Customer Transfer Protocol.

16.3 Subject to clause 28, in respect of any Switch this Contract shall terminate in part in relation to those Premises specified in the Switch Notice on the Switch Date save in respect of clause 13 (and any related provisions or schedules) which shall survive termination until all Charges owed by the Licensee in respect of such Premises have been paid.

16.4 In respect of any Switch, the Licensee shall perform and promptly notify the Undertaker of the Switch Read. If the Licensee fails to provide the Undertaker with the Switch Read within five (5) Working Days of the Switch Date, the Undertaker may use an Estimated Read in lieu of the Switch Read for the purposes of the Licensee’s final bill in respect of the Premises.

16.5 Subject to clause 28, to the extent that a Switch relates to all Premises specified in this Contract, this Contract shall terminate in its entirety on the Switch Date of the last Premises to Switch save in respect of clause 13 (and any related provisions or schedules) which shall survive termination until all Charges owed by the Licensee in respect of the Premises have been paid.

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17 Termination

17.1 The Licensee may terminate this Contract in whole or in part (for example terminating one (1) or more but not all of the Premises) on not less than 30 days’ prior notice in writing subject to its compliance with clause 18.3.

17.2 Without prejudice to any other rights or remedies, either Party may terminate this Contract in whole or in part (for example terminating one (1) or more but not all of the Premises) with immediate effect if the other Party commits a material breach of its terms and fails to either remedy such material breach (where capable of remedy) or present reasonable proposals to the other Party for rectification within 30 days of having been notified of the material breach.

17.3 For the purposes of clause 17.2, ‘material breach’ shall be construed as including without limitation:

(a) a failure by the Licensee to pay an undisputed amount within 14 days of the date of receipt of the relevant invoice; or

(b) any breach of the warranties set out at clause 4.

17.4 Without prejudice to any other rights or remedies, the Undertaker may terminate this Contract with immediate effect if the Licensee makes any arrangement or composition with its creditors or is the subject of a winding-up or administration order or passes a resolution for voluntary liquidation (other than a voluntary winding-up or solvent liquidation for the purposes of a scheme of reconstruction or amalgamation) or if a receiver or administrative receiver is appointed over all or any of its assets or a distress, attachment, execution or other legal process is levied, enforced or issued on or against the Licensee or any of its assets or the Licensee enters into or suffers any similar process in any jurisdiction.

18 Exit Arrangements

18.1 In the event of any termination of this Contract by the Undertaker pursuant to clause 17, the Undertaker agrees that it shall notify the Customer in writing or procure the notification of the Customer in writing by the Licensee’s administrators or similar (if appropriate). Such notice shall specify that:

(a) the Undertaker has assumed or will assume supply of the Premises pursuant to its statutory duties under section 63AC of the Act; and

(b) the Customer must promptly either enter into an agreement with a licensed water supplier to supply the Premises or request that the Undertaker make a supply to the Premises under section 52 or section 55 of the Act (as applicable).

18.2 In the event of any termination by the Undertaker or the Licensee of this Contract, the Undertaker shall perform the Termination Read as soon as reasonably practicable after service or receipt of the notice of termination.

18.3 If the Licensee terminates this Contract (in whole or in part) for any reason and has not entered into alternative arrangements for the supply of water to the Customer (including supply pursuant to section 66C of the Act or a Switch to another party holding a valid Water Supply Licence), the Licensee shall promptly notify the Customer in writing that:

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(a) the Licensee will cease supplying water to the Premises and the date thereof;

(b) the Customer may either enter into an agreement with a licensed water supplier to supply the Premises or request that the Undertaker make a supply to the Premises under section 52 or section 55 of the Act (as applicable); and

(c) if the Customer fails to make provision for its water supply as set out in (b) above, the Undertaker shall assume supply of the Premises pursuant to its statutory duties under section 63AC of the Act.

18.4 The Licensee shall promptly notify the Undertaker that it has complied with its obligations under clause 18.3. If the Undertaker has not received notice under this clause 18.4 within five (5) Working Days of the Licensee’s termination of this Contract (in whole or in part), the Undertaker may notify the Customer directly of the Licensee’s termination.

19 Force Majeure Event

19.1 Subject to the remainder of this clause 19, neither Party shall be liable to the other where it is unable to perform its obligations under this Contract by reason of a Force Majeure Event provided that the Party claiming to be prevented or delayed in the performance of its obligations by reason of a Force Majeure Event (the Affected Party) shall use all reasonable endeavours to bring the Force Majeure Event to a close or to find a solution by which the obligations contained in this Contract may be performed.

19.2 The Affected Party shall:

(a) notify the other Party of the Force Majeure Event as soon as reasonably practicable and in any event within 10 Working Days of the Force Majeure Event occurring; and

(b) upon request, within 15 Working Days of the Force Majeure Event occurring, provide a report containing all relevant available information relating to the Force Majeure Event and details of the measures the Affected Party is taking to overcome or circumvent such Force Majeure Event.

19.3 The Parties shall not be relieved by reason of the Force Majeure Event from any obligation to indemnify or make payment.

19.4 If the Force Majeure Event does not affect the Water Supply to all of the Premises of the Customer, the Affected Party shall only be relieved of its obligations in respect of those Premises which are affected.

19.5 If the Force Majeure Event continues materially to affect the Customer for more than six (6) months, the Licensee may terminate this Contract in whole or in part (as it relates to Premises affected by the Force Majeure Event).

20 Dispute Resolution

20.1 All disputes and differences arising out of or in connection with this Contract (each a Dispute) shall be resolved in accordance with this clause 20.

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20.2 Subject to clause 20.4, the Parties shall attempt to resolve any Dispute using the Internal Escalation Procedure set out below and this shall be a pre-condition to the commencement of any alternative dispute resolution process or referral to a Competent Authority under clause 20.3:

(a) Either Party may initiate the Internal Escalation Procedure by serving a notice on the other Party which refers expressly to this clause 20 and provides sufficient information to enable the other Party to understand the nature of the Dispute. Following service of such a notice, the Parties shall each use reasonable endeavours to resolve the Dispute by prompt discussion in good faith at a level appropriate to the Dispute in question.

(b) If the Dispute remains unresolved after 10 Working Days (or such other period as agreed by the Parties) of the notice being served, an appropriate representative of each Party’s senior management shall attempt to resolve the Dispute by prompt discussion in good faith.

(c) If the Dispute remains unresolved after 10 Working Days (or such other period as agreed by the Parties) of such referral to senior management then, unless the Parties agree otherwise, the Internal Escalation Procedure shall be treated as having been exhausted.

20.3 Subject to clause 20.4, in respect of any Dispute which has not been resolved through the Internal Escalation Procedure, either Party may:

(a) refer the Dispute to such alternative dispute resolution process as agreed by the Parties;

(b) refer the Dispute to a Competent Authority where appropriate; or

(c) commence legal proceedings in the Courts.

20.4 Nothing in this Contract precludes legal proceedings by either Party in the Courts at any time:

(a) for an order (whether interim or final) to restrain the other Party from doing any act or compelling the other Party to do any act; or

(b) for a judgment for a liquidated sum to which there is no arguable defence; or

(c) the purpose of which is to prevent a claim from becoming time-barred under any statute of limitations.

However, clause (a) does not apply to any proceedings from the point at which the Court orders, or the Parties agree, that the defendant should have permission to defend and clause (c) does not apply to any proceedings after they have been commenced and served.

21 Limitation of Liability

21.1 Save in respect of clauses 12.5 and 12.6, a Party shall only be liable to the other Party in contract, tort (including negligence and breach of statutory duty) or otherwise howsoever arising in connection with this Contract for direct losses. All other losses are expressly excluded (subject always to clauses 21.4 and 21.5).

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21.2 Each Party’s liability resulting from negligence or any breach or non-performance of this Contract (except for a breach by the Licensee of its obligation under clause 13 to make payment to the Undertaker, or any other breach or non-performance of this Contract arising from a failure by the Licensee to pay for the supply) or any misrepresentation or other tort on the part of that Party or its servants or agents shall be limited in any one (1) calendar year for any one (1) or more incidents or series of incidents whether related or unrelated in that calendar year to the aggregate of the Charges under this Contract in the preceding calendar year (or if in respect of the first calendar year of this Contract then the amount of charges incurred by the Licensee’s customer with the Undertaker in the preceding calendar year). All conditions, warranties or other terms, whether express or implied, statutory or otherwise, inconsistent with the provisions of this clause 21.2 are hereby expressly excluded (subject always to clauses 21.4 and 21.5).

21.3 Where either Party becomes aware of any claim, difference, dispute or proceedings (actual or threatened) which it reasonably expects may lead to a liability to the other Party under this Contract, it shall notify the other Party as soon as reasonably practicable and shall provide such information as the other Party may reasonably require and shall consult with the other Party as to the conduct of such claim, difference, dispute or proceedings (whether actual or threatened).

21.4 Nothing in this Contract shall operate so as to exclude or limit either Party’s liability for fraud, or death or personal injury caused by its negligence or the negligence of any of its officers, or any other liability that may not be excluded or limited as a matter of law in England and Wales.

21.5 Save as otherwise expressly provided in this Contract, this clause 21 (insofar as it excludes or limits liability) shall override any other provision in this Contract provided that nothing in this clause 21 shall exclude or restrict or otherwise prejudice or affect any of the rights, powers, duties and obligations of either Party hereto which are conferred or created by the Act, any Instrument of Appointment or Water Supply Licence granted under the Act or any other Relevant Law.

21.6 Subject to the rest of this clause 21, any liability under this Contract or otherwise on the part of either Party shall be reduced to the extent that the other Party has itself caused or contributed to the same and, in the event of liability to any third party, the Party who has caused or contributed to that liability shall indemnify the other Party in respect of the same.

21.7 The Parties agree to use all reasonable endeavours to mitigate any loss, damage or injury to which they might be subject as a result of a breach of this Contract or any Relevant Law by the other Party.

22 Intellectual Property Rights

22.1 Any Intellectual Property owned or duly licensed by either Party, or developed by either Party during the Term, in relation to the subject matter of this Contract howsoever arising shall remain vested in that Party and the other Party shall acquire no proprietary rights in or licence to use such Intellectual Property without the express written agreement of the Party in which it is vested.

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22.2 Any disclosure or provision of Intellectual Property by either Party to the other Party shall be solely for the purposes of the performance of its obligations under this Contract.

23 Assignment

23.1 Neither Party may assign any rights or obligations under this Contract without the prior written consent of the other Party (not to be unreasonably withheld or delayed) save that:

(a) The Licensee may assign its rights and/or obligations under this Contract in whole or in part at any time and on more than one (1) occasion provided that such assignee holds a Water Supply Licence.

(b) The Undertaker may assign its rights and/or obligations under this Contract in whole or in part at any time and on more than one (1) occasion provided that such assignee holds an Instrument of Appointment.

24 Notices

24.1 All notices to be given to a Party under this Contract shall be in writing in English and shall be marked for the attention of the person, and delivered by hand or sent by first class pre-paid post, facsimile transmission or e-mail to the address, detailed for the Party below:

(a) in the case of the Undertaker:

Address:

E-mail:

Facsimile No:

Attention:

(b) in the case of the Licensee:

Address:

E-mail:

Facsimile No:

Attention:

A Party may change the details recorded for it in this clause by notice to the other Party in accordance with this clause 24.1.

24.2 A notice shall be treated as having been received:

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(a) if delivered by hand between 9.00 am and 5.00 pm on a Working Day (which time period is referred to in this clause as Working Hours), when so delivered; and if delivered by hand outside Working Hours, at the next start of Working Hours;

(b) if sent by first class pre-paid post, at 9.00 am on the Working Day after posting if posted on a Working Day, and at 9.00 am on the second Working Day after posting if not posted on a Working Day;

(c) if sent by facsimile transmission, upon receipt by the sender of the facsimile transmission report that the facsimile has been transmitted to the addressee; and

(d) if sent by e-mail, upon receipt by the recipient’s receiving equipment.

In proving that a notice has been given it shall be conclusive evidence to demonstrate that delivery was made, or that the envelope containing the notice was properly addressed and posted (as the case may be).

24.3 In the case of a notice purporting to terminate this Contract, the Parties agree that notwithstanding such notice may have been sent by facsimile or e-mail, the terminating Party shall also, on the same day as the facsimile or e-mail notice is sent, send a copy of the notice by first class pre-paid post to the other Party.

25 Relationship of the Parties

25.1 Nothing contained in this Contract shall be construed as giving rise to the relationship of principal and agent (save as otherwise expressly provided in this Contract) or partnership or joint venture between the Parties.

26 Third Party Rights

26.1 Unless a right of enforcement is expressly provided for in this Contract, it is not intended that a third party shall have the right to enforce any term of this Contract under the Contracts (Rights of Third Parties) Act 1999.

26.2 If a person who is not a Party to this Contract is stated to have the right to enforce

any of its terms under the Contracts (Rights of Third Parties) Act 1999, the Parties may rescind or vary this Contract without the consent of that person.

27 Entire Agreement

27.1 This Contract, together with the confidentiality agreement entered into by the Parties in connection with this Contract, sets out the entire agreement between the Parties and supersedes all prior representations, arrangements, understandings and agreements between the Parties relating to the subject matter hereof.

27.2 Each Party acknowledges that in entering into this Contract it does not rely on any representation, warranty, collateral agreement or other assurance of any person (whether a Party to this Contract or not) that is not set out in this Contract or the documents referred to in it. Each Party waives all rights and remedies which, but for this clause, might otherwise be available to it in respect of any such representation, warranty, collateral agreement or other assurance. The only remedy available to any Party in respect of any representation, warranty, collateral agreement or other

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assurance that is set out in this Contract (or any document referred to in it) is for breach of contract under the terms of this Contract (or the relevant document). Nothing in this Contract shall, however, limit or exclude any liability for fraud or fraudulent misrepresentation.

28 Survival of Rights

28.1 Termination of this Contract for any reason shall not affect any rights or liabilities that have accrued prior to termination or the coming into force of any term that is expressly or by implication intended to come into force or continue in force on or after termination. Without limitation, the Parties intend that the following provisions shall survive termination:

(a) Exit Arrangements (clause 18);

(b) Dispute Resolution (clause 20);

(c) Limitation of Liability (clause 21); and

(d) Governing Law (clause 33).

29 Waiver

29.1 Delay in exercising, or failure to exercise, any right or remedy in connection with this Contract shall not operate as a waiver of that right or remedy. The waiver of a right to require compliance with any provision of this Contract in any instance shall not operate as a waiver of any further exercise or enforcement of that right and the waiver of any breach shall not operate as a waiver of any subsequent breach. No waiver in connection with this Contract shall, in any event, be effective unless it is in writing, refers expressly to this clause, is duly signed by or on behalf of the Party granting it, and is communicated to the other Party in accordance with clause 24 (Notices).

30 Rights Cumulative

30.1 The rights and remedies of the Parties in connection with this Contract are cumulative and, except as expressly stated in this Contract, are not exclusive of and may be exercised without prejudice to any other rights or remedies provided in this Contract by law or equity or otherwise. Except as expressly stated in this Contract (or in law or equity in the case of rights and remedies provided by law or equity) any right or remedy may be exercised wholly or partially from time to time.

31 Severance

31.1 If any term or provision of this Contract is held to be illegal or unenforceable in whole or in part under any enactment or rule of law, such term or provision or part shall to that extent be deemed not to form part of this Contract but the validity and enforceability of the remainder of this Contract shall not be affected.

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32 Counterparts

32.1 Each Party shall do and execute, or arrange and procure for the doing and executing of, any act and/or document reasonably requested of it by the other Party to implement and give full effect to the terms of this Contract.

32.2 This Contract may be entered into in any number of counterparts and by the Parties on separate counterparts, all of which taken together shall constitute one and the same instrument.

33 Governing Law

33.1 This Contract and any non-contractual obligations arising out of or in relation to this Contract shall be governed by and interpreted in accordance with the laws of England and Wales and, subject to clause 20 (Dispute Resolution), each Party agrees to submit to the exclusive jurisdiction of the English and Welsh Courts as regards any claim or matter arising under this Contract.

Signed by the Parties or their duly authorised representatives on the date of this Contract.

Signed by

duly authorised for and on behalf of

Signed by

duly authorised for and on behalf of

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Schedule 

Definitions

Act means the Water Industry Act 1991.

Additional Premises means premises which are owned or controlled by the Customer other than Premises.

Advance Payment Discount means the percentage discount published by the Undertaker on its website and notified to Ofwat from time to time.

Affected Party has the meaning given to it in clause 19.1.

Area of Appointment means the area of England and Wales for which an Instrument of Appointment is granted.

Billing Period means, subject to the provisions of paragraph 2.1 and 2.2 of schedule 2, the billing period specified by the Licensee in the Data Sheet.

Change Proposal has the meaning given to it in paragraph 1 of schedule 3.

Charges means the charges calculated in accordance with schedule 2.

Charges Adjustment means any adjustment to charges pursuant to paragraph 3 of schedule 2.

Charges Terms means the charges terms set out in the Data Sheet.

Commencement Date means the date of this Contract or such other date as agreed by the Parties.

Competent Authority means any body that has a relevant regulatory or supervisory role including the Secretary of State for Environment, Food and Rural Affairs, Ofwat, the Drinking Water Inspectorate, the Environment Agency and the Health and Safety Executive.

Customer means the customer specified in the Data Sheet(s).

Customer Transfer Protocol means Ofwat’s customer transfer protocol from time to time in effect.

Data Sheet means the data sheet(s) set out in the Appendix to this Contract.

Dispute has the meaning given to it in clause 20.1.

Drought Order has the same meaning as in section 221 of the Water Resources Act 1991.

Due Date has the meaning given to it in paragraph 2.4 of schedule 2.

Emergency Event means any event which is causing or is likely to cause danger to persons or property and, in respect of the latter, the Undertaker believes on reasonable grounds such danger to be existing or imminent.

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Emergency Works has the meaning given to it in section 52 of the New Roads and Street Works Act 1991. For information purposes only, the current version on the date of issue of the Common Contract is set out below:

(1) In this Part ‘emergency works’ means works whose execution at the time when they are executed is required in order to put an end to, or to prevent the occurrence of, circumstances then existing or imminent (or which the person responsible for the works believes on reasonable grounds to be existing or imminent) which are likely to cause danger to persons or property.

(2) Where works comprise items some of which fall within the preceding definition, the expression ‘emergency works’ shall be taken to include such of the items as do not fall within that definition as cannot reasonably be severed from those that do.

(3) Where in any civil or criminal proceedings brought by virtue of any provision of this Part the question arises whether works were emergency works, it is for the person alleging that they were to prove it.

Estimated Read means an estimation of the Meter Read by the Undertaker in accordance with good industry practice (meaning all relevant practices and professional standards that would be expected of an Undertaker in these circumstances).

Exit Point means the point on the Supply System where the Licensee is permitted to draw off an agreed supply to service Premises (for example the stop valve).

Fire-Fighting Offtake has the meaning given to it in paragraph 3.3 of schedule 2.

Force Majeure Event means any act of God, adverse weather conditions (excluding any serious deficiency in supplies caused by an exceptional shortage of rain), strike, lockout or other industrial disturbance or dispute (other than one affecting only the Party in question or its parent company or other companies in its group or otherwise associated with it), war, threat of war, act of terrorism, blockade, revolution, riot, civil commotion, public demonstration, sabotage, earthquake, or other event or circumstance which is beyond the reasonable control of the Party in question to the extent that it causes or results in an inability to perform obligations under this Contract.

Guidance means the Access Codes Guidance issued by Ofwat from time to time under section 66D of the Act which includes the Common Contract and the Operational Code.

Instrument of Appointment means an appointment granted to a company under Chapter 1 of the Act or such other legislation from time to time in effect which grants an appointment that is analogous to that granted by Chapter 1 of the Act and any conditions which are imposed, agreed or determined pursuant to the Relevant Laws.

Intellectual Property means:

(a) patents (including rights in and/or to inventions);

(b) trade marks, service marks, trade names and business names (in each case including rights in goodwill attached thereto);

(c) design rights;

(d) rights in and/or to internet domain names and website addresses;

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(e) semi-conductor topography rights;

(f) copyright (including future copyright);

(g) database rights;

(h) rights in and to confidential information (including know how and trade secrets); and

(i) all other intellectual property rights,

in each case subsisting at any time in any part of the world (whether registered or unregistered) and (i) any pending applications or rights to apply for registrations of any of these rights that are capable of registration in any country or jurisdiction and (ii) any similar or analogous rights to any of these rights, whether arising or granted under the laws of England and Wales or in any other jurisdiction.

Internal Escalation Procedure means the procedure set out in clause 20.2.

Interruptible Supply means a supply of water which may be interrupted by the Undertaker in accordance with the interruptible supply terms set out in the Data Sheet.

Large User means a customer of the Undertaker or the Licensee (as the context requires) that has an annual consumption greater than the threshold level specified in section 17D of the Act.

Leakage Adjustment means the amount that the Undertaker allowed for leakage allowances to its non-household customers in the preceding charging year (if any) divided by the aggregate of the charges for water supplied to its non-household customers multiplied by 100.

Licensee Equipment means any equipment attached to the Supply System by the Licensee including, for example, data logging equipment.

Losses means damage, losses, expenses or costs.

Meter has the same meaning as in section 219(1) of the Act and, in the context of this Contract, means the meter installed at the Premises.

Meter Read means a read of the Meter by physical or electronic inspection.

Network Event means an unforeseen and reasonably unforeseeable event which prevents or materially restricts the ability of the Supply System to provide the Water Supply to Premises.

Ofwat means the Water Services Regulation Authority or such other body as is created by statute with the purpose of carrying out the functions conferred on or transferred to it by the Act or under or by virtue of any other enactment.

Operational Code means the operational code published by Ofwat in the Guidance from time to time in effect.

Planned Maintenance means any maintenance requirement which:

(a) is identified in the Undertaker’s maintenance plans as notified to the Licensee in accordance with clause 9; or

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(b) was a reasonably foreseeable maintenance requirement.

Premises means any eligible premises specified in a Data Sheet or otherwise agreed by the Parties in writing to be supplied under this Contract (with eligibility determined in accordance with the requirements of section 17A(3) of the Act).

Provisional Monthly Charge means the charge calculated pursuant to paragraph 4.2 of schedule 2 in accordance with the Guidance from time to time in effect. Reconciliation Period has the meaning given to it in paragraph 5.1 of schedule 2.

Reconciliation Report has the meaning given to it in paragraph 5.1 of schedule 2.

Relevant Law means:

(a) any statute, regulation, by law, ordinance or subordinate legislation which is in force for the time being or which may be introduced from time to time to which a Party is subject;

(b) the common law as applicable to the Parties (or any one of them);

(c) any binding Court order, judgment or decree applicable to the Parties (or any one of them);

(d) any binding order, decision, determination or direction of a Competent Authority which applies generally or applies to the Parties in respect of their rights or obligations concerning this Contract;

(e) any and all relevant licences, consents or permissions, including the Undertaker’s Instrument of Appointment and the Licensee’s Water Supply Licence; and

(f) any applicable industry code, policy, guidance, standard or accreditation terms enforceable by law.

Safety Requirements has the meaning given to it in the Data Sheet or as otherwise notified to the Undertaker by the Licensee pursuant to clause 10.Special Consumer means any Customer that:

(i) the Undertaker and the Licensee agree; or

(ii) a Competent Authority specifically or generally determines by relevant notice,

regularly requires water urgently on medical or other grounds.

Supply Change means a change to the Water Supply (for example changes to the source, colour or specific identified qualities of the Water Supply) other than a Supply Interruption.

Supply Interruption means any failure in whole or in part to provide a Water Supply other than a Supply Change for a period of four (4) or more hours where such failure relates to a reduction in the constancy or pressure of the water supplied to the Premises and then only to the extent that such reduction is material (and Interrupt and Interruption shall be construed accordingly).

Supply System means the supply system of the Undertaker by reference to the meaning given to the supply system of a water undertaker in section 17B(5) of the Act.

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Supply System Change Proposal has the meaning given to it paragraph 2 of schedule 3.

Switch means the switch of responsibility for the supply of water to Premises from the Licensee to the Undertaker or a third party.

Switch Date means the date a Switch occurs pursuant to clause 16.

Switch Notice has the meaning given to it in clause 16.1.

Switch Read means the Meter Read performed on the Switch Date.

Term means the period commencing on the Commencement Date and expiring on the date on which this Contract terminates pursuant to any provision of this Contract.

Termination Read means the Meter Read performed on the termination of this Contract.

Transfer means the transfer of Premises from the Undertaker or a third party to the Licensee.

Transfer Date means the date the provision of the Water Supply commences for Premises.

Transfer Read means the Meter Read performed on the Transfer Date.

Unmeasured Take has the meaning given to it in clause 11.1.

Unplanned Maintenance means any maintenance which is not Emergency Works and that is undertaken:

(a) to rectify an unforeseen (and reasonably unforeseeable) Supply Interruption; (b) to avoid a Supply Interruption provided that such Supply Interruption was not

reasonably foreseeable; or

(c) in good faith, to avoid or limit an Emergency Works situation arising.

VAT means value added tax.

Water Supply means water supplied pursuant to the Undertaker’s obligations set out in clause 2.

Water Supply Licence means a water supply licence granted to a company pursuant to Chapter 1A of the Act or such other legislation from time to time in effect which grants an appointment that is analogous to that granted by Chapter 1A of the Act and any conditions which are imposed, agreed or determined pursuant to the Relevant Laws.

Working Day means a day other than a Saturday, Sunday or public holiday in England and Wales.

Working Hours has the meaning given to it in clause 24.2(a).

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Schedule 

Charges

1 Calculation of Charges

1.1 The Undertaker shall calculate the Charges in accordance with the Charges Terms set out in the relevant Data Sheet.

2 Payment of Charges

2.1 The Licensee shall at its discretion determine the Billing Period for the Premises, and the date on which it wishes to receive invoices, provided that the Billing Period is no greater than one (1) month in duration (unless consented to in writing by the Undertaker).

2.2 The Licensee may change the Billing Period for the Premises, and the date on which it wishes to receive invoices, provided that the duration of such changed Billing Period is no greater than one (1) month in duration (unless consented to in writing by the Undertaker) and the Licensee gives the Undertaker not less than three (3) months’ prior written notice of such change.

2.3 The Licensee shall perform (or shall procure the performance of) the Meter Read (or Transfer Read) for the Premises on the last day of the relevant Billing Period. The Licensee shall notify the Undertaker in writing of the Meter Read (or Transfer Read) not more than five (5) Working Days after the expiry of the relevant Billing Period. If the Undertaker has not received the relevant Meter Read (or Transfer Read), the Undertaker may raise an invoice on the basis of an Estimated Read.

2.4 The Undertaker may raise an invoice after the expiry of the relevant Billing Period for the Premises in accordance with the date determined by the Licensee under paragraph 2.1 or 2.2 above. Such invoice shall be due and payable by the Licensee within 14 days of receipt of the invoice (Due Date).

2.5 Any invoice issued by the Undertaker pursuant to paragraph 2.4 above shall detail (if applicable):

(a) the Premises;

(b) the Charges;

(c) the Charges Terms;

(d) For each Meter –

(i) the Transfer Read, preceding Meter Read or preceding Estimated Read (as appropriate);

(ii) the present Meter Read, present Estimated Read or the Termination Read (as appropriate);

(e) any adjustments from previous Billing Periods;

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(f) any Charges Adjustment; and

(g) any VAT payable.

2.6 Without prejudice to any other rights or remedies available to the Undertaker, the Undertaker may add interest at the rate of three (3) percent per annum above the current official Bank Rate (as published by the Bank of England from time to time) to any amounts not paid by the Licensee on or before the Due Date (to be calculated on a daily basis).

2.7 All amounts expressed as payable pursuant to this Contract are expressed to be exclusive of any applicable VAT and accordingly VAT shall be payable in addition to the amounts expressed at the rates from time to time in effect against a valid VAT invoice.

3 Charges Adjustments

3.1 If the Licensee is making payment in advance (see paragraph 4 below) for the Water Supply, the Undertaker shall deduct the Advance Payment Discount from the Charges.

3.2 If the Undertaker has in effect at any time during the Billing Period a policy of providing a reduction in charges to non-household customers where such customers incur or suffer a leakage, the Undertaker shall reduce the Charges to the Licensee in the relevant Billing Period by the Leakage Adjustment.

3.3 If the Licensee uses water that is supplied pursuant to this Contract for the purposes of fire-fighting or testing fire-fighting equipment (Fire-Fighting Offtake) in any Billing Period, the Undertaker shall make an adjustment to the Charges for such Billing Period equivalent to the proportion of the Charges incurred that relate to the Fire-Fighting Offtake provided that the Licensee notifies the Undertaker in writing:

(a) within 30 days if the Fire-Fighting Offtake occurred for the purpose of fire-fighting or, if impracticable, as soon as is reasonably practicable after the date of the Fire-Fighting Offtake; or

(b) no later than 30 days after the date of the Fire-Fighting Offtake if the Fire-Fighting Offtake occurred for the purposes of testing fire-fighting equipment.

4 Payment in Advance

4.1 If requested by the Licensee, the Undertaker may charge the Licensee in advance for the provision of the Water Supply. In such circumstances, the provisions of paragraphs 2.3 to 2.6 above shall be disapplied and the provisions of this paragraph 4 applied.

4.2 In respect of any payment that is made in advance, the Undertaker shall calculate the Provisional Monthly Charge in accordance with the Guidance.

4.3 The Parties shall perform the following in respect of any payment in advance:

(a) The Licensee shall pay the Provisional Monthly Charge no later than five (5) Working Days prior to the commencement of the relevant Billing Period;

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(b) At the end of the relevant Billing Period, the Licensee shall perform (or procure the performance of) the Meter Read (or Transfer Read) and notify the Undertaker in writing of the Meter Read (or Transfer Read) not more than five (5) Working Days after the expiry of the relevant Billing Period;

(c) The Undertaker shall thereafter issue an invoice for the Charges for the relevant Billing Period to the Licensee in accordance with the date determined by the Licensee under paragraph 2.1 or 2.2 above and with paragraph 4.4 below.

4.4 Any invoice issued by the Undertaker pursuant to this paragraph 4 shall detail (if applicable):

(a) the Premises;

(b) the Charges;

(c) the Charges Terms;(d) For each Meter –

(i) the Transfer Read, preceding Meter Read or preceding Estimated Read (as appropriate);

(ii) the present Meter Read, present Estimated Read or the Termination Read (as appropriate);

(e) any adjustments from previous Billing Periods;

(f) any Charges Adjustment;

(g) any VAT payable;

(h) a credit for the amount of the Provisional Monthly Charge for the relevant Billing Period; and

(i) the amount of the Provisional Monthly Charge for the following Billing Period.

4.5 If the Provisional Monthly Charge for a Billing Period is greater than the amount owing to the Undertaker for such Billing Period, the Undertaker shall deduct such amount from the Provisional Monthly Charge for the following Billing Period or, if requested by the Licensee, reimburse the Licensee such amount within 10 Working Days of receiving such request.

4.6 If the Provisional Monthly Charge for a Billing Period is less than the amount owing to the Undertaker for such Billing Period, the Undertaker may add such amount to the Provisional Monthly Charge for the following Billing Period.

4.7 If the Provisional Monthly Charge over any consecutive three (3) month period is either materially greater or materially less than the actual Charges for the Water Supply in the same period, either Party may require the other Party to agree to a recalculation of the Provisional Monthly Charge in accordance with the Guidance on not less than one (1) month’s notice in writing.

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5 Reconciliation

5.1 No later than 20 Working Days after the first (1) anniversary of the Commencement Date and each anniversary thereafter during the Term, the Undertaker shall provide the Licensee with a report in writing of all payments made, all amounts paid or owing, and meter readings performed or estimates made (the Reconciliation Report) in the preceding 12 month period (the Reconciliation Period).

5.2 Insofar as the Reconciliation Report shows that there is a discrepancy between payments made and amounts owing and this amount is undisputed then:

(a) if there has been an undercharge over the Reconciliation Period, the Licensee shall make a payment of such undercharge within 30 Working Days of receipt of the Reconciliation Report; or

(b) if there has been an overcharge over the Reconciliation Period, the Undertaker shall make a payment of such overcharge within 30 Working Days of issue of the Reconciliation Report.

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Schedule 

Change Control Process

1 If either Party requires a change to the terms of this Contract other than one relating to adding or switching Premises, it shall submit to the other Party a written proposal outlining its change requirements (a Change Proposal).

2 In respect of any Change Proposal which would require the Undertaker to perform works or make changes to the Supply System (a Supply System Change Proposal), the Undertaker shall notify the Licensee within 20 Working Days of receipt that it regards the Change Proposal as a Supply System Change Proposal.

3 In respect of any Supply System Change Proposal:

3.1 The Licensee may require the Undertaker to provide it with a report that details the costs of the Supply System Change Proposal provided that the Licensee reimburses the Undertaker’s reasonable costs of providing such report. The Undertaker shall provide the Licensee with such report in such time period as is reasonable taking into account the work required by the Undertaker to compile it.

3.2 The Undertaker may reject a Supply System Change Proposal if:

(a) the Licensee has not requested the Undertaker to provide a report pursuant to paragraph 3.1 above and in the Undertaker’s opinion (acting reasonably) such a report is necessary considering the nature of the Supply System Change Proposal.

(b) the Licensee does not agree to pay the Undertaker’s reasonable costs of performing works or making changes to the Supply System;

(c) the Undertaker considers that the Supply System Change Proposal would or would be likely to put it in breach of any Relevant Law; or

(d) the Undertaker considers that the Supply System Change Proposal would put at risk its ability to meet any of its existing or probable future obligations to supply buildings or parts of buildings with water for domestic purposes.

4 Subject to paragraph 5 below, in respect of any Change Proposal other than a Supply System Change Proposal the receiving Party shall notify the requesting Party within 20 Working Days of receipt of the Change Proposal that it:

4.1 agrees to the Change Proposal;

4.2 rejects the Change Proposal and proposes alternative terms; or

4.3 rejects the Change Proposal and provides reasons for its rejection.

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5 If a Change Proposal relates to a request by the Licensee to change its payment terms, the Undertaker shall agree to such Change Proposal provided that the Licensee meets any conditions set out in this Contract relating to such a change.

6 In respect of any rejection of a Change Proposal pursuant to paragraphs 3 or 4 above, the Parties shall thereafter negotiate in good faith the terms of such Change Proposal. If agreement cannot be reached within 60 Working Days, either Party may treat the failure to reach agreement as a Dispute and invoke the Dispute Resolution procedure set out at clause 20.

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Data Sheet

One (1) Data Sheet to be completed for each premise to be supplied under this Contract.

Name of Customer:

Customer Account Number:

Address of Premises:

Meter Details:

Meter Type:Meter Serial Number:Meter Size:Meter Location:Last Meter Reading:Date of Last Meter Reading:

Transfer Date and Time:

Potable Supply: Y/N (delete as appropriate)

Interruptible Supply : Y/N (delete as appropriate)

Interruptible Supply Terms (if applicable):

Special Consumer: Y/N (delete as appropriate)

Safety Requirements (if applicable):

Charges Terms:

Billing Period (and the date on which the Licensee wishes to receive invoices):

Operational Contact Information for Licensee:

Name:Telephone:Email:Fax:

END OF FORM

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