06/11/2009

Increasing competition in Anglian region

Ofwat confirmed today that it proposes to appoint Independent Water Networks (IWN) as water and sewerage supplier for the vast Brooklands development near Milton Keynes. IWN will replace Anglian Water in supplying water services to around 2500 properties mostly households.


IWN will buy a bulk water supply and bulk connection to the sewers from Anglian Water and offer its customers a 5% price discount on their water bills (but not sewage bills). This will be the fourth win for IWN in the Anglian region and helps confirm IWN and its parent the Inexus Group as the market leader in independent utility networks. 


It is by no means clear yet whether the increased competition for Anglian Water is actually a good thing for all water customers. It is very difficult to be sure that the price IWN is paying Anglian really reflects the true cost of the water and sewage service in the locality.  This may not matter while these deals are relatively small but it is a crucial issue as competition grows. 

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