Ofwat is inviting comments on a proposal to appoint Albion Water as the statutory provider of sewerage services to 700 properties in Knowle, near Fareham, in Southern Water's supply area. Albion Water has already satisfied Ofwat that it will be able to carry out the same functions as every other sewerage undertaker in England and Wales.

Albion Water is proposing to take over the existing sewerage infrastructure and the on-site sewage treatment works from the developer, Berkeley Homes. Berkeley homes no longer wishes to serve the site as the provision of sewerage services is not part of its business as a developer. Portsmouth Water will continue to provide water. Albion Water plans to offer customers a five per cent discount on the domestic volumetric sewerage rate of Southern Water until at least 2014.

Albion Water was granted its first inset appointment in 1999 to supply water to the Shotton Paper Mill on Deeside and was the first new entrant into the water industry following privatisation. If the inset appointment is granted, Albion Water would become the third new water and sewerage service provider since privatisation.

A more detailed version of the proposal is available on the Ofwat website www.ofwat.gov.uk. Comments must be submitted to Ofwat by 12 December 2008. Write to Richard Field, Inset Analyst, Ofwat, Centre City Tower, 7 Hill Street, Birmingham, B5 4UA or email Richard.Field@ofwat.gsi.gov.uk