Scottish and Southern Energy (SSE) has announced that it has teamed up with regulator Ofwat to create the first new water and sewerage company to enter the domestic market since privatisation 18 years ago.
The regulator says it will grant an inset appointment that will allow Scottish and Southern Energy Water to supply water and sewerage services to a development of 935 homes near Salisbury in Wiltshire.
Inset appointments are allowed when a site is not served by an existing appointed water company.
Currently this area is supplied by Wessex water - and Ofwat is facilitating Scottish and Southern Energy's entrance into the market so as to provide an element of competition.
Ofwat director of regulatory finance and competition Keith Mason said the news marked "a good step forward for competition within the water industry".
"Scottish and Southern will be a new player in the industry but it already has a good reputation for customer service in the gas and electricity sectors," he continued.
"We expect it to bring that expertise to the benefit of water and sewerage customers in this small area."
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