Yu Water Ltd, a sister company to business energy supplier Yü Energy, has applied to Ofwat for a Water Supply Licence.
The Nottingham-based firm said it intends to enter the non-household water supply market with respect to water supply only, building upon its experience in the energy market for customer service and billing.
Yü Energy, which was listed on AIM last year, supplies energy to small and medium-sized businesses,
The deadline to make representations or objections to Ofwat about the application is 12th May.