OFWAT has initiated a formal investigation into Castle Water, identified by case reference OFW-063005, concerning a dispute eligibility under Section 17E of the Water Industry Act 1991. This action follows a preliminary assessment and indicates a potential issue with Castle Water's handling of a complainant's case within the regulated water market.

Castle Water is now subject to this formal investigation and will be required to provide further information to OFWAT. While no specific compliance deadline or penalty is mentioned at this stage, the company must cooperate fully with the regulator. Compliance officers should monitor the progress of this investigation as it may set precedents for dispute resolution within the UK water market.