WESSEX Water customers in south Wiltshire have been assured that it is business as usual, despite news that the company's owner, Enron, has financial problems.

The assurance comes from the independent water watchdog Ofwat.

Sheila Reiter, chairman of Ofwat's Wessex Customer Services Committee, said Wessex Water is "ring-fenced" and operates independently of Enron.

She added: "We are satisfied that services to customers will be maintained.

"Our next step will be to monitor developments and work closely with Ofwat to ensure Wessex Water customers' interests continue to be protected."

But the campaign group WaterWatch has warned the collapse of the parent group gives cause for concern. It is urging Ofwat to take over the running of Wessex Water by imposing an administration order to protect Wessex Water's cash reserves.