Water Merger References: Competition Commission Guidelines
Consultation Draft
Introduction
This consultation document seeks views on guidance that the
Competition Commission (CC) proposes to issue outlining its
proposed approach to assessing water merger references referred
to it by the Office of Fair Trading (OFT) under the water
merger regime set out in the Water Industry Act 1991 as amended
by the Enterprise Act 2002 and the Water Act 2003. The guidance
will form part of the advice and information published by
the CC under the Enterprise Act 2002.
The guidance has been drawn up following consultation with
members of the CC.
Responses
You can respond to this consultation:
by email to:
by post to:
Susan Maunsell
Competition Commission
Victoria House
Southampton Row
London
WC1B 4AD
Enquiries to
email as above or telephone 020 7271 0287 /fax 0207271 0367
Closing date
Responses should be received by 29 October 2004.
Executive summary
The Water Industry Act 1991 put in place a special merger
regime for mergers between water enterprises (that is, water
and sewerage undertakings). The Enterprise Act 2002 made changes
to how all mergers are regulated, and included provisions
(not yet in force) to make amendments to the Water Industry
Act merger provisions. These changes will align the water
merger provisions more closely with the Enterprise Act general
merger provisions The CC is determinative in merger cases,
including water mergers, referred to it by the OFT. The changes
include the questions which the CC has to answer in respect
of water mergers.
The draft water merger guidance attached is intended to apply
to water mergers referred to the CC by the OFT in the same
way as Merger References: Competition Commission Guidelines
(CC2) already applies to general merger references. It covers
the CC’s approach to the questions of whether a merger
is anticipated or has taken place and if so, whether that
merger has prejudiced or may prejudice the ability of the
Director General of Water Services to make comparisons between
water enterprises. It describes how that latter question might
be addressed. It goes on to describe how, if the CC finds
prejudice, it might go on to consider what remedy might be
appropriate and to what extent there may be customer benefits
from the merger which should be taken into account in deciding
on the remedy.
It is intended that the amendments to the Water Industry
Act 1991 will be brought into force around the end of 2004
and at that point the new water mergers regime will take effect.
The proposed guidance is self explanatory and there are
no particular sections of the document that the CC wishes
to draw to consultees’ attention. We would, however,
welcome comments on the guidance either of a general nature
or on any specific points.
How to respond
See above for contacts and final date.
When responding please state whether you are responding
as an individual or representing the views of an organisation.
If responding on behalf of an organisation, please make it
clear who the organisation represents and, where applicable,
how the views of members were assembled.
Copies of this consultation document are available from
the CC’s website: www.competition-commission.org.uk
Confidentiality
The CC may wish to publish your response. If you do not want
all or part of your response or name made public, please state
this clearly in the response. Any confidentiality disclaimer
that may be generated by your organisation’s IT system
or included as a general statement in your fax cover sheet
will be taken to apply only to information in your response
for which confidentiality has been requested.
Next steps
A summary of the consultation and outcome will be provided
during November 2004 on www.competition-commission.org.uk
and the final guidance will be published.
Downloads
Water
Merger References: Competition Commission Guidelines document
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