REG - Competition and Mkts - Merger Update: Pennon/Bristol Water

PennonAnnouncement

14/02/2022 15:00

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RNS Number : 6062B  Competition and Markets Authority  14 February 2022

CMA invites comments on water sector merger remedy:

 

The Competition and Markets Authority (CMA) has opened a consultation on
undertakings proposed by Pennon Group plc (Pennon) to address the prejudice to
Ofwat's ability, in carrying out its functions, to make comparisons between
water enterprises under the Water Industry Act 1991, over its acquisition of
Bristol Water Holdings UK Limited (Bristol Water).

 

On 22 December 2022, the CMA announced that it would refer the acquisition for
an in-depth investigation unless Pennon offered acceptable undertakings to
address the CMA's concerns.

 

To address the CMA's concerns, Pennon have offered undertakings to provide
separate reporting information for South West Water and Bristol Water - which
will enable Ofwat to maintain separate wholesale water price controls, with
separate revenue controls and revenue limits, for South West Water wholesale
water activities and Bristol Water wholesale water activities from 1 April
2025; Pennon also acknowledges and agrees that Ofwat will maintain separate
price controls for the South West Water wholesale water activities and Bristol
Water wholesale water activities.

 

On 10 January 2022, the CMA announced that it would look in detail at these
undertakings. The CMA has until 7 March 2022 to consider whether to accept the
undertakings, or a modified version of them. As part of this process, the CMA
is now consulting publicly on whether the proposals are sufficient to address
the CMA's concerns.

 

Before reaching a final decision, the CMA is therefore inviting interested
parties to make their views known. The deadline for responses is 28 February
2022.

 

The consultation on the undertakings and all other information relating to
this merger investigation can be found on the case page at
https://www.gov.uk/cma-cases (https://www.gov.uk/cma-cases) .

 

In the event of media enquiries please email Press@cma.gov.uk
(mailto:Press@cma.gov.uk) .

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