Slow growth in water competition

There has been a slow but steady growth in inset appointments. A number of new entrants have emerged including companies like SSE Water owned by the major utility company Scottish and Southern Energy and Avon Valley Water owned by Biwater.

Mostly the inset appointments have been for new housing developments, in Ofwat jargon "unserved" areas, although there appointment has still proved contentious. Typically the new water suppliers are offering their customers a 5 % discount over the Water plc's bulk rates. For developers a number of benefits are offered such as easy adoption of the new foul and surface water sewers and help with investment costs.

New entrants to the market are to be welcomed as they will stimulate new ideas and services for customers. But with the drop in new house building and slow rate of new appointments it will be a very long time before these new competitors are a serious force in the water market place