Ofwat
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New boost for water industry competition
Competition in the water industry took a step forward this week when Ofwat announced a proposal to create the first new water and sewerage company to serve domestic customers since privatisation 18 years ago.
Ofwat is proposing to grant an `inset appointment' to allow Scottish and Southern Energy Water (SSEW) to supply water and sewerage services to a 935 home development near the Wiltshire city of Salisbury. The development is in Wessex Water's current area of supply.
Ofwat is now asking for views on its proposal to grant an appointment.
Keith Mason, Ofwat's Director of Regulatory Finance and Competition, said today:
"This is a good step forward for competition within the water industry. Scottish and Southern will be a new player in the industry but it already has a good reputation for customer service in the gas and electricity sectors. We expect it to bring that expertise to the benefit of water and sewerage customers in this small area."
Inset appointments are allowed when sites are not currently served by an existing appointed water company, or where the current appointed water company agrees to the application, or when each of the premises in the inset area uses at least 50 million litres of water per year. There are currently 11 appointments but this would be the first one where a new entrant to the water industry would serve households.
Ofwat will ensure that customers of the new company will pay no more than they would had they been supplied by Wessex Water.
Notes to Editors:
1. The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will allow companies to carry out their functions properly, and finance them. Its duties include protecting the interests of consumers, wherever appropriate by promoting effective competition. The Water Services Regulation Authority succeeded the Director General of Water Services on 1 April 2006.
2. A public notice has been published in the Salisbury Journal today, inviting comments on the consultation.
3. A copy of the consultation paper will be available on the Ofwat website on http://www.ofwat.gov.uk or from the Ofwat library on 0121-625 1373
Ofwat publications and press notices can be found on Ofwat's website at: http://www.ofwat.gov.uk
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