Non-profit company can go ahead with acquisition of Welsh Water
The Department of Trade and Industry has announced that the proposed acquisition of Welsh Water by the non-profit organisation, Glas Cymru, will not be referred to the Competition Commission.
Glas Cymru was set up with the purpose of keeping local control over Welsh Water, and intended to cut bills by five percent in 2004, with further rebates each year thereafter (see related story). In accordance with the advice of the Director General of Fair Trading (DGFT) and the Director General of Water Services, (DGWS), Dr Kim Howells, the Minister for Consumer and Corporate Affairs has decided that the proposed merger can now go ahead.
“The DGFT has advised me that this proposed merger has no adverse effects on competition in the water and sewerage industry,” said Dr Kim Howells, Consumer and Corporate Affairs Minister. “The DGWS has already announced that he is content for the proposal to proceed to the next stage, provided Glas Cymru agrees to certain licence modifications and meets certain conditions. I have therefore accepted the DGFT’s recommendation not to refer the proposed merger to the Competition Commission.”