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Plans by the Treasury to begin introducing competition to the domestic water retail market by 2020 will be a “total disaster”, according to the chief executive of Anglian Water.
Speaking exclusively to Utility Week, Peter Simpson said the plan to set up a water retail market for households only three years after the non-domestic sector has been opened up to competition is “totally impractical”.
He added that if the timescale set out by Treasury is enforced on the sector, both the non-domestic and domestic markets would suffer. “We would do two things really badly.”
Simpson, who is also the non-executive director representing licenced undertaker members on the board of Market Operating Services Limited (MOSL), told Utility Week the 2020 timeframe would be rushed and not allow for a review of the opening up of the non-domestic market, which is set to happen in April 2017.
He stated that the government should follow the Cave review more closely, introducing new markets into the water sector on a gradual basis.
“Could we have domestic retail competition in future? Yes of course we can, but I think we should do it step by step.
“It’s too important an industry to mess about with and to get it wrong.”
Last month Ofwat set out its draft terms of reference, stating how it will conduct a review of the costs and benefits of introducing competition into the household water retail market.
Simpson added he this review process will give the water sector an opportunity to raise these concerns with the regulator and government plans for domestic competition “will become clearer”.
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