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Ofwat announces new water company

Ofwat has approved a new water and sewerage company - SSE Water - the first new company to offer both services since privatisation.

SSE Water will provide water and sewerage services to the Portway housing development near Salisbury.

SSEW buy water from Wessex Water, and discharge sewage to Wessex Water's network.

Ofwat will ensure that SSEW's customers will pay no more than they would have had they been supplied by Wessex Water.

SSE Water is Ofwat's twelfth 'inset appointment', which allows for one supplier to be replaced by another for a specific geographical area, but must meet three criteria:

- The area must be supplied with at least 50 megalitres of water in England (250 megalitres of water in Wales) over one year. This also applies to inset appointments for sewerage services.

- The area must be currently unserved or supplied by unregulated or 'private' supplies with its own source of water. This must be met for both water and sewerage services included in the inset appointment application.

- The existing appointed company must consent to transfer supply to the inset appointee.

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