You may be aware that in April 2015 Pennon Group Plc, parent company to South West Water Limited (SWW) and Viridor Limited, bought Bournemouth Water Limited from Sembcorp Holdings Limited. Click here for more information.
Following competition clearance from the Competition and Markets Authority in November 2015, [ https://www.gov.uk/government/news/cma-clears-water-merger ] steps are now being taken to integrate the Bournemouth Water business into South West Water.
Most of the legal steps to implement integration will be carried out under a Statutory Transfer Scheme (under Schedule 2 Water Industry Act 1991) which is currently being agreed with Ofwat, the Water Industry regulator. It is anticipated that on or about 1 April 2016 Bournemouth Water’s regulated activities and any arrangements relating to those activities, including among other things, contracts (including supplier contracts) will transfer to SWW. This means that any rights, liabilities or obligations that Bournemouth Water had under any agreement will be transferred to SWW. Once the transfer has taken place, SWW will automatically stand in the place of Bournemouth Water, as if SWW had been the original party to the agreement. The statutory process will override any contractual obligation to notify you or for the contracts to be otherwise assigned. This means that from 1 April 2016 any arrangements that you have previously had with Bournemouth Water will now be with South West Water.
The Procurement teams of both companies are being merged to deliver cost and organisational efficiencies. The new team will be based in Exeter. In the short term it will be business as usual but the new Procurement team will be looking to rationalise arrangements to deliver customer service and operational improvements. We will be making contact with Bournemouth Water suppliers to confirm any transitional arrangements where necessary, otherwise supply arrangements will continue as before except that ordering and payment process will transfer to SWW’s systems from 1 April 2016.
What you need to do
The Purchase Order and payment processes will change as they will move to SWW’s systems. To accommodate these changes you will need to do the following:
If you have any questions please contact the SWW procurement team by email.