United Utilities (UU) and Severn Trent have confirmed that all conditions relating to their joint venture – Water Plus – have been satisfied and the transaction has been completed.
Operations will be progressively transferred to a new head office located in Stoke-on-Trent over the course of 2016.
The joint venture, initially announced on 1 March 2016, will combine the two companies’ non-household water and wastewater retail businesses into one business, and Competition and Markets Authority approval was granted on 3 May.
With the non-household retail market in England opening for competition in 2017, Water Plus will combine the complementary skills of both companies – including sales, customer service, business strategy and credit management – to deliver an “attractive proposition” for large and small business customers across England and Scotland.
The companies said bringing their businesses together will create a JV with the synergies to provide an “efficient and cost-effective operation” focussed on improved customer service and growth.
Speaking to Utility Week last month, Water Plus chief executive Sue Amies-King said the company plans to be a “winner in the market” and wants to be “market-leading on service and on people engagement”.
“We have ambitions for growth and we want to be successful, we want to be seen as a go-to company for business customers,” she added.
Read Utility Week’s full Q+A with Sue Amies-King here
In January, Portsmouth became the first water company to reveal that it would exit the market when competition is introduced. The water-only company sold its business customer base to Scottish supplier Castle Water, which has subsequently applied to Ofwat for a water supply and sewerage licence and has set its sights on English market expansion.
Four other companies have also applied for licences since Ofwat opened the application process for those wishing to provide retail services in the new market at the beginning of April.
Scottish retailers Cobalt Water and Clear Business Water, and Thames Water Commercial Services and Northumbrian Water Business have all now submitted applications.
Other Scottish suppliers, including Business Stream and new entrant Everflow, have told Utility Week they are considering buying into the English market when it opens, and Veolia UK has also said it wants to grow its retail activities in the UK water market.
English companies looking to stay have begun positioning themselves for market opening, with Northumbrian Water announcing a rebrand of its business retail arm to Wave, and South West Water teaming up with Bournemouth Water to create Pennon Water Services. Utility Week understands Anglian Water and at least one other WASC are set to follow suit.
Read Utility Week’s analysis: one year to market opening and WICS chief executive Alan Sutherland’s advice on how to prepare
