Water code modification appeal 2025 (Castle Water)
Source: gov.uk (2025-08-06)

The Competition and Markets Authority (CMA) has published its determination and order in the appeal by Castle Water Limited against Ofwat’s decision to reject Castle Water’s request for a change to the Wholesale Retail Code, which was published on 5 February 2025.

Administrative timetable

CMA final costs determination and Order

6 August 2025: On 5 August 2025, the CMA issued to the parties its final determination and order on costs in relation to the Castle Water appeal 2025. Non-sensitive versions of these documents are published below.
- Final costs determination (PDF, 391KB) (https://assets.publishing.service.gov.uk/media/68932aa5308194d2312be018/__Final_costs_determination__.pdf) (6.8.25)
- Cost Order (PDF, 113KB) (https://assets.publishing.service.gov.uk/media/68932ab5308194d2312be019/Cost_Order_.pdf) (6.8.25)
CMA determination

13 May 2025: The CMA issued to the parties its determination and order in relation to Castle Water’s appeal against Ofwat’s rejection of Castle Water’s proposal to modify the wholesale retail code.

Non-sensitive versions of the determination and order are published below.
- Determination (PDF, 1.2MB) (https://assets.publishing.service.gov.uk/media/6823315a2b7ca0cc347e079d/final_determination.pdf) (13.5.25)
- Determination order (PDF, 100KB) (https://assets.publishing.service.gov.uk/media/68231c267b63976092644a5c/determination_order.pdf) (13.5.25)
Notice of extension

1 May 2025: The CMA has decided to extend the period for the determination of the appeal by 10 working days, to 19 May 2025.
- Notice of extension (PDF, 127KB) (https://assets.publishing.service.gov.uk/media/68134600ee9d78cbe60117f7/notice_of_extension1.pdf) (1.5.25)
Response to the Notice of Appeal

24 March 2025: On 19 March 2025 the CMA received a response from Ofwat to Castle Water’s Notice of Appeal.
- Ofwat’s response to the Notice of Appeal (PDF, 372KB) (https://assets.publishing.service.gov.uk/media/67dd73e6c6194abe97358c2e/Ofwat_s_response_to_the_Notice_of_Appeal.pdf) (24.3.25)
Permission to appeal granted

12 March 2025: The CMA has granted Castle Water permission to appeal.
- Decision on permission to appeal (PDF, 187KB) (https://assets.publishing.service.gov.uk/media/67d296c9a6d78876a3fb0a81/decision_on_permission_to_appeal.pdf) (13.3.25)
Appeal group appointed

13 March 2025: The CMA has appointed a group of panel members to determine the appeal.
- Richard Feasey (https://www.gov.uk/government/publications/cma-panel-member-biographies-and-disclosures-of-interest/inquiry-chairs-biographies#richard-feasey) (Chair)
- Frances McLeman (https://www.gov.uk/government/publications/cma-panel-member-biographies-and-disclosures-of-interest/panel-members-biographies#frances-mcleman)
- Crispin Wright (https://www.gov.uk/government/publications/cma-panel-member-biographies-and-disclosures-of-interest/panel-members-biographies#crispin-wright)
Notice of appeal

26 February 2025: Castle Water Limited (Castle Water) applied for permission to appeal Ofwat’s decision of 5 February 2025 to reject Castle Water’s request for a change to the Wholesale Retail Code. Castle Water proposed to amend section 9.11 of the Wholesale Retail Code to relieve retailers of the obligation to provide credit support to a wholesaler where, and for so long as, that wholesaler does not have a stable credit rating of BBB/Baa2 or higher.

The administrative timetable for the CMA’s decision whether to grant permission to appeal can be found above. If permission to appeal is granted, the CMA has 30 working days following the date it receives the Ofwat’s reply, to determine the appeal. This deadline can be further extended by 10 working days where there are good reasons for doing so.

This appeal process relates to arrangements between water wholesalers and retailers who in turn supply the business retail market. It is not part of the PR24 process relating to the CMA’s redetermination of Ofwat’s price control decision.
- Castle Water notice of appeal: 26 February 2025 (PDF, 1.4MB) (https://assets.publishing.service.gov.uk/media/67c6e5ca16dc9038974dbe36/notice_of_appeal.pdf) (4.3.25)
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