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Water Companies: Insolvency

Question for Department for Environment, Food and Rural Affairs

UIN HL15550, tabled on 7 May 2019

To ask Her Majesty's Government what steps they are taking to prevent retailers in the water market who sell to SME customers from failing.

Answered on

20 May 2019

When considering applications from potential retailers, Ofwat, the economic regulator for the water industry, considers whether it would have sufficient financial resources to finance its obligations under the law and to deliver its business plan. Once the retailer enters the market, it is for the retailer to ensure it operates efficiently and is able to continue to operate. In any functioning market some retailers will fail. If a retailer were to fail, as has been seen in other sectors, Ofwat would step in and ensure affected customers are allocated to a new supplier in a seamless way.