A subsidiary of Regent Gas has been granted a water retail licence by Ofwat.
That will allow Regent Water to participate in the open water market when it opens in England and Wales in April this year.
Around 1.2 million businesses and public sector organisations will be able to choose who they pay for their retail water and wastewater services from 1st April.
The regulator confirmed Regent Water has been given a water supply and sewerage licence (WSSL).
Ofwat is currently seeking views on its proposed principles for voluntary codes of conduct for third party intermediaries (TPIs) in the business water retail market.
The average household water and sewerage bill in England and Wales is to increase by 2% this year.