The application was for a water supply and sewerage licence, and would allow Cobalt Water to integrate retail operations in the English and Welsh water markets into its current operations as a licensed provider of Scottish water.
“By maintaining our current high levels of customer service, operational expertise and financially prudent business model, we will trade successfully in these new markets,” the company said.
Cobalt began trading in July 2013 and is owned by Andrew Robertson (managing director), Scott Macleod (operations director) and Hugh Brown (commercial director).
The company currently supplies water and sewerage services to approximately 2000 customers in Scotland.
Cobalt is the third Scottish supplier to apply for a licence to operate in the English market, after Castle Water and Clear Business Water, after Ofwat opened the application process for those wishing to provide retail services in the new market at the beginning of April.
Retail services cover activities such as billing, reading water meters and customer services and advice. Companies interested in providing such services will need to hold a water supply licence (WSL) or a water and sewerage supply licence (WSSL).
At present, businesses, based wholly in England and who use more than five mega litres of water – which means a water bill of about £9,000 – per year can choose their water retailer.
However, when the market opens the remaining estimated 1.2 million businesses, charities and public sector organisations will either be able to stay with their existing supplier, or shop around and switch.
Once open, the new market will link to the existing market in Scotland, and will be the largest retail water market in the world, delivering an estimated £200 million of overall benefits to customers and the UK economy.
Other Scottish suppliers, including Scottish Water subsidiary Business Stream and new entrant Everflow, have also told Utility Week they are considering buying into the English market when it opens.