15th Nov 2006 07:04
Scottish & Southern Energy PLC15 November 2006 15 November 2006 SCOTTISH AND SOUTHERN ENERGY PLC PROPOSAL TO ENTER WATER SECTOR FOR FIRST TIME Scottish and Southern Energy plc ("SSE") has decided to make a formalapplication to Ofwat for 'Inset Appointments' which would allow it to install,own and operate water and wastewater services for end user customers for thefirst time. SSE is already a significant provider of connections in electricity and gas - inSeptember 2006, the number of new premises connected to its wholly-owned gasnetworks passed 40,000 for the first time. The decision to seek 'InsetAppointments' follows a review by SSE of the extent of its ability to offer'multi-utility' services to large developments. In water, this is currentlylimited to contracting-related functions. SSE has concluded that its objectiveshould be to install, own and operate water and wastewater networks, and is nowengaged in detailed discussions with Ofwat. SSE expects that its initial applications will be in respect of significantdevelopments in south-east London and Wiltshire, providing connections to around2,500 and around 1,000 properties respectively. SSE would also aim to provide aseries of beyond-the-meter water services, such as schemes to manage water usageand maximise recycling. Ian Marchant, Chief Executive of SSE, said: "Our decision to move into gas connections some years ago was a naturalextension of our network capability in electricity. With a strong presence intwo of the three core utilities, it makes sense to look at the best way ofcompleting the set. "We've decided that seeking 'Inset Appointments' is the right way forward,because it will enable us to offer 'multi-utility' solutions to our customersfor the larger developments. That's why we hope to make formal applications toOfwat early in the new year. "We think this is the best way of dipping our toe in water. It complements anexisting business activity very well and it's based on a precedent of evolvingfrom electricity connections only, to electricity and gas. In other words, it'sin line with the SSE way of doing things." Enquiries to: Scottish and Southern Energy plcAlan Young - Director of Corporate Communications + 44 (0)870 900 0410Denis Kerby - Investor and Media Relations Manager + 44 (0)870 900 0410 Financial DynamicsAndrew Dowler + 44 (0)20 7831 3113 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SSE