A second new household supplier is set to enter the water industry in England after Ofwat launched a consultation into proposed services for a housing development in Northamptonshire.

The regulator is proposing to grant an ‘inset appointment’ to Independent Water Networks Limited (IWNL) which will allow it to supply water and sewerage services to a 950-home development at Long Croft Road, in Corby. The development is in Anglian Water’s area of supply. Ofwat is now seeking views on its proposal to allow the change of supplier.

IWNL is the second proposed new water and sewerage company to serve domestic customers since privatisation of the water industry in England and Wales 18 years ago. In May Ofwat announced proposals to allow Scottish and Southern Energy Water (SSEW) to supply water and sewerage services to a housing development near the Wiltshire city of Salisbury.

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Customers at the Long Croft site will benefit from the change of supply straight away – IWNL is proposing that its 2007-08 water volumetric rate is five per cent lower than that of Anglican Water. IWNL’s 2007-08 water standing charge will be identical to Anglican Water’s.

IWNL has committed that its customers will pay no more than they would have done had they been supplied by Anglican Water, unless Ofwat gives IWNL consent to raise its tariffs above Anglican Water’s tariffs in any charging year. IWNL 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 today: “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.”

(JM/SP)