Fairfields probe prompts questions on Cox’s position

As Ofwat continues to investigate Anglian Water over alleged abusive pricing practices, the role of Jonson Cox is coming under scrutiny.

Cox, who was appointed chair of Ofwat last month, was chief executive of Anglian Water Group in 2008, the time at which the company is alleged to have exerted a margin squeeze on a competitor.

In a draft decision served on Anglian last December, Ofwat said the company had infringed the Competition Act. The investigation, into the pricing of services to the Fairfields development in Milton Keynes, was prompted by a complaint from rival Independent Water Networks. Ofwat said it was reviewing “detailed representations” from Anglian to decide whether there was enough evidence to move to a final decision.

If that decision goes against Anglian, the company could be fined. According to Office of Fair Trading guidance, where a competition breach is found, involvement of directors entails a stiffer penalty.

Ofwat said rules ensure board members are not directly involved in cases where there is a potential conflict of interest.

Thomas Docherty, Labour MP and member of the environmental select committee, is pressing for assurances that Cox will have no involvement, direct or indirect, in the investigation. In a letter to Ofwat chief executive Regina Finn, he asked whether the case would be concluded by October, when Cox is due to take up his post.

Docherty quizzed water minister Richard Benyon over what account was taken of the Fairfields investigation when determining whether Cox was a suitable nominee for the Ofwat chair.

An environment spokesman said Cox was appointed after “a rigorous selection process which was validated by an independent assessor”.

This article first appeared in Utility Week’s print edition of 3 August 2012.

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