5 November 2007
A new water service provider will soon be launched in the UK, following regulator Ofwat's announcement of its consultation on the matter.
The new firm will result from the merger of South East Water and Mid Kent Water and will serve 250,000 residents.
Plans for the inter-firm link-up were approved by the Competition Commission earlier this year.
Fears of the potentially competition-reducing (and therefore bill-inflating) implications of the merger led to the commission introducing several caveats to its approval, however.
Bills for customers of the new firm must be reduced by an average of £5 each by 2009 and efficiency must be improved, the commission ruled.
"Ofwat will ensure these conditions are implemented, and that South East Water maintains, and where necessary improves, its service standards to all its customers," the watchdog said in a statement.
It is anticipated that the new firm will retain the name South East Water following the merger.
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