THE battle for water customers on Teesside has escalated after Northumbrian Water was awarded the contract to supply the Tofts Farm development near Samsung, replacing Hartlepool Water.

The developer of the land, One NorthEast, was able to choose its supplier because the development is on a greenfield site that does not have an existing water supply.

Northumbrian Water will serve the site by expanding its existing network.

Customers at the Tofts Farm site will be charged the same tariff as existing Northumbrian Water customers.

Director general of Ofwat, Sir Ian Byatt, said: "This inset appointment is a welcome move towards further competition in the water industry.

"This agreement demonstrates that competition can and will occur where conditions are favourable."

Both companies' licences have been changed to make Northumbrian the statutory water undertaker for the site.

The Tofts Farm contract win is the latest in a battle for customers between Hartlepool Water, owned by Anglian Water, and Northumbrian Water.

In October last year, Hartlepool Water was given the go-ahead by the water watchdog to supply sites on Teesside, traditionally supplied by Northumbrian, including capturing the contract for a planned new business park at Wynyard, near Billingham.

Northumbrian bosses hit back by applying to Ofwat to replace Hartlepool as supplier to Tofts Farm.

Northumbrian has also threatened further raids into Hartlepool Water's territory.

l Ofwat's Yorkshire Customer Services Committee (CSC) is asking Ofwat the director general to allow more time for consideration of Kelda's plans to turn Yorkshire Water into a not-for-profit body.

Chairman of the CSC, Eric Wilson, said: "Serious questions have been raised by the CSC and customers of Yorkshire Water about the merits of Kelda's proposals.

"In particular, it is not clear how the company's customers will benefit from the new structure."