Sutton and East Surrey Water Services Limited has applied to the water industry regulator Ofwat for a retail licence under section 17A of the Water Industry Act 1991.

The water-only company joins a growing number of utilities who have applied to the regulator for a retail supply licence for their independent subsidiaries ahead of the opening up of the non-household market to competition in 2017. The licences enable the companies to compete with others for the business customer market.

Ofwat can grant two types of licence:

i. Retail supply licence - allows the licensee to purchase a wholesale supply from an appointed water company's supply system and supply

ii. Combined supply licence – enables the licensee to introduce water into a supply system and supply the premises of its customers.

Companies the regulator has to date granted licences to include:

• Business Stream Ltd (Scottish Water)
• Anglian Water Business (Anglian Water)
• Avon Valley Water Limited (Sembcorp)
• Kelda Water Services (Kelda Water)
• Source for Business (South West Water)
• Severn Trent Services (Severn Trent Water)
• Thames Water Commercial Services (Thames Water)     
• United Utilities Water Sales Ltd (United Utilities)