Decision to accept binding commitments from Thames Water Utilities Limited
| Date | 31 March 2022 |
March 2022
Decision to accept binding
commitments from Thames Water
Utilities Limited
Decision to accept binding commitments from Thames Water Utilities Limited
1
About this document
This document sets out our decision (the Decision) to accept the binding commitments1
offered to us by Thames Water Utilities Limited (Thames Water) under section 31A of the
Competition Act 1998 (CA98) to address competition concerns that we had identified during
our investigation into its approach to the introduction of smart water meters at business
premises.
In May 2021 we consulted on our proposal to accept commitments that Thames Water had
offered to address those same competition concerns (Initial Commitments). We discussed
the responses we received to that consultation with Thames Water and, in light of the issues
raised, Thames Water proposed modifications to those commitments (Modified
Commitments).
We considered that the Modified Commitments offered by Thames Water would address our
competition concerns and in February 2022 consulted on a proposal to accept the Modified
Commitments. Having considered comments made in relation to the Modified Commitments,
we have agreed two minor changes to the Modified Commitments with Thames Water to
improve their clarity. We have also accepted a request from Thames Water that it be
permitted to amend the expected delivery dates for five individual commitments. We have
now decided to accept those commitments (Final Commitments).
This document summarises:
•our investigation (Section 1);
•the relevant markets that we have provisionally identified (Section 2);
•the competition concerns that we identified (Section 3);
•the commitments offered by Thames Water (Section 4);
•the responses that we received on our proposal to accept the Modified Commitments
(Section 5);
•our assessment of the Final Commitments (Section 5); and
•our decision to accept the Final Commitments (Section 6).
The Final Commitments are set out in full in Appendix A1.
1 A party under investigation can offer commitments at any time during the course of an investigation until a
decision on infringement is made (see paragraph 10.21 of the Competition and Markets Authority's 'Guidance on
the CMA’s investigation procedures in Competition Act 1998 cases' (the CMA Procedural Guidance)). In this case,
no decision on infringement has been made.
Decision to accept binding commitments from Thames Water Utilities Limited
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Executive summary
On 15 February 2022, we gave notice (February 2022 Notice) that we proposed to accept
the Modified Commitments
2
offered by Thames Water in relation to our investigation into
whether Thames Water has infringed the prohibition in section 18 CA98 (the Chapter II
Prohibition).
3
The Modified Commitments built on the Initial Commitments proposed by Thames Water that
we had consulted on accepting in May 2021 (May 2021 Notice).
4
Responses to that
consultation identified areas where it was felt that the Initial Commitments needed
strengthening, which Thames Water did through the Modified Commitments.
Thames Water offered the commitments to address competition concerns that we had
identified during our investigation into its approach to smart metering and the effects that
this was having on business customers
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, retail water companies (retailers) and third party
providers (TPPs) offering value-added services to those business customers and/or retailers.
Our investigation identified that Thames Water had installed smart water meters that could
not having logging equipment attached to them and had failed to provide alternative access
to the water usage data it gathers from those meters on fair, reasonable and non-
discriminatory terms. This had the effect of withdrawing access to water usage data for
existing users and denying access to that data for those who may wish to access it in future.
Water usage data is used to monitor a customer's water consumption and can be used by
retailers and TPPs to provide value-added services such as leakage detection, water
efficiency services and bill validation services to business customers.
The February 2022 Notice outlined our provisional view that the Modified Commitments
addressed our concerns by committing Thames Water to installing digital smart meters that
are compatible with logging devices (where requested to do so by the retailer or their
business customer); making improvements to the digital data services (DDS)
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that it offers to
retailers as a means of providing them with water usage data; and offering the DDS for free
once initial set-up costs have been paid by the customer.
We received three responses to the February 2022 Notice. Having considered these
responses, we agreed with comments made by one of the respondents that some minor
2
Notice of intention to accept modified binding commitments from Thames Water Utilities Ltd in relation to the
provision of access to its smart meters and digital data services, 15 February 2022.
3
Section 18 CA98 prohibits any conduct by one or more undertakings that amounts to the abuse of a dominant
position in a market if it may affect trade within the UK.
4
Notice of intention to accept binding commitments from Thames Water Utilities Ltd in relation to the provision of
access to its smart meters and digital data services, 25 May 2021.
5
In this document, the term 'business customers' includes all customers who are not household customers.
6
Digital data services are services that provide data from Thames Water's smart meters on a customer's water
usage. The frequency with which the data is collected and provided to the purchaser depends on the nature of the
service being offered.
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