Commenting on the Ofwat statement made earlier today Kelda Group Executive Chairman John Napier said:
"We put forward our proposals for consultation as we believed that a new structure is required if the industry is to be able to fund its long term capital investment programmes at the lowest cost whilst delivering upon its commitment to improved customer service.
"We continue to believe that there are significant benefits and advantages to customers, shareholders and the community from a separation of asset ownership from operations and the development of structures which attract large amounts of capital at the lowest cost. We have made it clear that our proposals require regulatory approval and because they involve mutuality, they also require some form of clear customer endorsement.
"Kelda believes that the regulators concerns, when taken together cannot be addressed by amendments to the current proposal. Accordingly, we are withdrawing our current proposal with the intention of seeking a way forward that is acceptable to the Director General of Water Services and others.
"As previously announced, Kelda is continuing to focus on its water and waste interests in the UK and USA and will complete its disposal programme. The detailed internal work carried out on these proposals has helped to focus management further on the continuing improvement of the water business which remains our overriding purpose."
