22 August 2007
Competition between water suppliers is increasing with the announcement that Ofwat has proposed plans to permit a new household water company to supply homes in England.
Independent Water Networks Limited (IWNL) is the proposed water and sewerage supplier for a 950-home development in Corby, despite the fact that this area is already in Anglian Water's supply zone.
IWNL is the second proposed new water and sewerage company to serve domestic customers since the water industry was privatised in 1988.
The news follows a similar situation in May, when Ofwat proposed to allow Scottish and Southern Energy Water (SSEW) to supply water and sewerage services to a housing development near Salisbury.
And Ofwat is promising that customers at the Corby housing development will benefit from the change of supply immediately, with IWNL's water volumetric rate 5% lower than Anglian Water.
IWNL's water standing charge and sewerage charge will also match that of Anglian Water, while it will also be subject to the same level of customer service requirements as other water and sewerage companies.
Keith Mason, Ofwat's Director of Regulatory Finance and Competition, said: "This is the second change of supplier to household customers that we are proposing to grant in four months, and shows that we are keen for new companies who can bring benefits to customers to enter the industry."
Ofwat is now seeking views on its proposals to switch supplier.