In relation to its size and resources the company, had been faced with a disproportionate burden of regulation. It was realised that this would increase still further with the opening of the non-household retail market and the new integrated approach to business plans leading to PR19.
An application was made to Ofwat for the company to change its status to that of a private supply. Every customer received a letter on the subject in the last week of February 2017. An open forum was held in the Shipton Bellinger Village Centre on 4th March.
Ofwat opened a consultation under section 8 of the Water Industry Act 1991 that paved the way for the change. At the same time a further letter of explanation was sent to all customers that included a response slip inviting customers to give their views on the proposal. 251 customers responded (40%) and 72% of those agreed to the proposal.
Ofwat accepted the result but nevertheless required the majority shareholding in the company to be held by a trust that would give an undertaking to provide customers with a level of protection that closely mirrored the statutory rights they had previously.
Following the formation of the Cholderton Estate Trust, Cholderton became a private supply with effect from 1st May 2018.
Click here to see the presentation at Shipton Bellinger PC.
Click here to view the letter to customers 24 February 2017.
Click here to view the second letter to customers.
Click here to view Ofwat’s notice terminating Cholderton’s licence in order to allow it to become a private water supplier.