The Competition and Markets Authority (CMA) has allowed Castle Water Limited to appeal an Ofwat decision, after the regulator rejected Castle Water’s request for a change to the Wholesale Retail Code.
Castle Water, an independent business water retailer, proposed to amend section 9.11 of the Wholesale Retail Code to relieve retailers of the obligation to provide credit support to a wholesaler where, and for so long as, that wholesaler does not have a stable credit rating of BBB/Baa2 or higher.
This appeal process relates to arrangements between water wholesalers and retailers who in turn supply the business retail market. It is not part of the PR24 process relating to the CMA’s redetermination of Ofwat’s price control decision.
In its response to the appeal request, Ofwat asked the CMA to uphold the regulators decision to reject Castle Water’s request and order Castle Water to pay Ofwat’s costs of the proceedings.
The CMA has until the 2nd May 2025 to make a final decision on the request.
