Ofwat announces first licensees for competition in water industry

Ofwat has announced the first group of licensees who will compete with the existing water companies to supply large water users.

Aquavitae Ltd, WaterCall Ltd, and Severn Trent Water Select Ltd, will all have the opportunity to supply water to business customers who use at least 50 megalitres of water a year.

A further six companies have also indicated they intend to apply for licences over the coming months.

"We expect new licensees will be companies who have a clear vision of the value they can add to customers' supply arrangements," said Philip Fletcher, Director General of Water Services. "We are likely to see a steady increase rather than a rush of new companies wanting to compete in the water industry. Household and smaller business customers, who cannot choose their supplier, will not be disadvantaged."

Around 2,200 businesses, such as health service trusts, big industrial plants and universities, who collectively spend around £210 million each year on water, will be eligible to switch their supplier.

David Hopkins



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