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Business retailer Tor Water has paid around £60,000 in outstanding payments it owed to wholesalers, after it was ordered to do so by Ofwat.
The water regulator banned Tor from providing any services to any new customers while it remained a defaulting trading party. It was also told to notify the market operator, MOSL, that it was subject to the prohibitions.
An Ofwat spokesperson said: “Our direction required Tor Water to pay outstanding invoices for which it was considered a defaulting trading party under the market codes. Those payments have now been made.
“The direction also placed a series of requirements on Tor Water whilst it was classed a defaulting trading party, these remain requirements if Tor Water were to again become a defaulting trading party.
“We will be monitoring that closely.”
In addition, South West Water has confirmed it will not be terminating its wholesale contract with Tor as payment was received for the outstanding defaulted balance.
A South West Water spokesperson said: “As an active supporter of the non-household retail market, we have supported and continue to support all of our retailers.
“We also work closely with Ofwat and MOSL to ensure that the market operates effectively and fairly.”
Responding to the decision, a Tor Water spokesperson said: “Tor Water is pleased to be able to say we have stepped up to the plate and faced the music.
“This directive gave us the focus to better understand the market and it has revealed ways to achieve much better margins that previously thought possible.
“Although not helpful or supportive the Ofwat directive was met. We are looking forward to the next challenge with our funding activities and looking for investment.”
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