Directions to modify the wholesale services agreement of the licensed provider with Scottish Water in the absence of consent to standard licence condition B4 or B5
As you know the Commission has given licensed providers the opportunity to opt in to either or both of the financial resilience and customer support measures contained in the two standard licence conditions mentioned above. Licensed providers who have chosen not to give their consent to either of these standard conditions coming into effect in their licences, by directions issued in August 2021, resumed two month prepayment of wholesale charges to Scottish Water under their wholesale services agreements in September 2021.
As you will also know, those licensed providers are now required to transition to three months prepayment of wholesale charges to Scottish Water under their wholesale services agreements in January 2022.
You have chosen not to give your consent to either of those standard licence conditions coming into effect in your licences.
On that basis and in the exercise of its powers under paragraph 8B of the Water Services (Codes and Services) Directions 2007 and standard condition A7(6) of the standard conditions the Commission hereby directs that your wholesale services agreement with Scottish Water shall be modified as set out in the annex to this letter.
This letter will also be sent to Scottish Water and published on the Commission’s website.
Annex
Modifications to your wholesale services agreement
The provisions of the wholesale services agreement are modified, in their application to the invoicing and payment of the Provisional Monthly Charge from (and including) January 2022 onwards as follows (but without prejudice to any subsequent direction made by the Commission):
(1) For Clause 8.1.2(b), substitute the following:
“(b) invoice the Licensee for the Provisional Monthly Charge for every other Month during the Supply Period (“Month X”), including the original amount of the Provisional Monthly Charge for Months covered by 8A.4, not later than 14 Business Days prior to the start of Month X-2.”
(2) For Clause 8.2, substitute the following:
“8.2 The Provisional Monthly Charge in respect of any Month X invoiced under Clause 8.1.2(b) shall be paid by the Licensee by the tenth Business Day prior to the start of Month X-2.”
(3) In the final paragraph of Clause 8.8.2, substitute “Month X-2” for the words “Month X-1”.