17th May 2007 11:15
Scottish & Southern Energy PLC17 May 2007 SCOTTISH AND SOUTHERN ENERGY PLC WATER INDUSTRY COMPETITION Ofwat has announced a proposal to create the first new water and seweragecompany to serve domestic customers since privatisation 18 years ago. It isproposing to grant an 'inset appointment' to allow Scottish and Southern EnergyWater ("SSEW"), a subsidiary of Scottish and Southern Energy plc ("SSE"), tosupply water and sewerage services to a 935 home development near the Wiltshirecity 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: "Thisis a good step forward for competition within the water industry. Scottish andSouthern will be a new player in the industry but it already has a goodreputation for customer service in the gas and electricity sectors. We expect itto bring that expertise to the benefit of water and sewerage customers in thissmall area." Inset appointments are allowed when sites are not currently served by anexisting appointed water company, or where the current appointed water companyagrees to the application, or when each of the premises in the inset area usesat least 50 million litres of water per year. There are currently 11appointments but this would be the first one where a new entrant to the waterindustry would serve households. Ofwat will ensure that customers of the new company will pay no more than theywould had they been supplied by Wessex Water. Ian Marchant, Chief Executive of SSE, said: "With interests in electricity, gasand telecoms connections, we've reviewed the extent of SSE's ability to offer'multi-utility' services to larger customers. This ability is currently limitedto a contracting role in providing water connections services. This licence willallow us to install, own, operate and supply water and sewerage services. Webelieve that this is the best way of getting into water. It complements anexisting business activity very well and it's based on our precedent of evolvingfrom electricity connections only to electricity and gas. It also meanscompetition in the water industry in England and Wales is moving forward." Enquiries to: Scottish and Southern Energy plcJustyn Smith - Head of Media Relations + 44 (0)870 900 0410Sharron Miller-Mckenzie - Press Office Manager + 44 (0)870 900 0410 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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