WATER SERVICES
REGULATION AUTHORITY News Release (PN16/07) issued by The Government
News Network on 17 May 2007
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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