Article Abstract:
Hyder, the Welsh water and electricity utility, has decided not to appeal to the Competition Commission over the cuts in water bills imposed by the regulator. Institutional investors are opposed to a protracted six-month inquiry in front of the competition authorities. The group is in the midst of a strategic review that could see it dispose of its Swalec electricity distribution business and a rights issue. The group has debts of GB[pound] 1.7bn and it will see profits fall by GB[pound] 70mn next year as a result of cuts in water and electricity bills.
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Article Abstract:
The establishment of a competitive UK water market on 1 March 2000 may put the safety and quality of supplies at risk, claimed Water UK chief executive, Pamela Taylor, on 12 January 2000. The Competition Act's introduction could give new suppliers the opportunity to commence operations without a licence and enable them to operate outside the Drinking Water Inspectorate's independent monitoring rules. Ms Taylor believes that compulsory licensing should be introduced covering all new suppliers. The Act will also allow suppliers to provide customers with water via another supplier's network and Ms Taylor fears that consumers living in rural areas may be forced to pay more due to the lucrative customers being cherry picked by firms.
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Article Abstract:
The water regulator, Ian Byatt, says water companies could get fines up to 30% of their turnover if they obstruct competition. From March 1st 2000, the Competition Act will open up the scope for common carriage, where one supplier can use another's network to supply inside their monopoly area. If infrastructure sharing is refused it could be deemed an abuse of dominant market position. Companies can be fined 10% of turnover for a period of three years.
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