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Bournemouth and South West Water (SWW) have created a legally separate company – Pennon Water Services – to be based in Bournemouth, in preparation for market opening.
The two companies said the new brand will operate on behalf of South West Water Business Services, Bournemouth Water Business Services, Source for Business, Aquacare and Avon Valley.
The announcement follows the completion of Bournemouth’s transfer into SWW at the beginning of this month, following final clearance of the merger from the Competition and Markets Authority (CMA) late last year.
Operating under a single licence, the merged company will deliver the separate SWW and Bournemouth Water 2015-20 business plans, and the Bournemouth Water name will be retained.
At present, businesses, based wholly in England and who use more than five mega litres of water – which means a water bill of about £9,000 – per year can choose their water retailer.
However, when the market opens in April next year, the remaining estimated 1.2 million businesses, charities and public sector organisations will either be able to stay with their existing supplier, or shop around and switch.
Once open, the new market will link to the existing market in Scotland, and will be the largest retail water market in the world, delivering an estimated £200 million of overall benefits to customers and the UK economy.
Early in March, Severn Trent Water and United Utilities (UU) stated their intention to team up and create a new, separate, and yet-to-be-named retail business.
Read Utility Week’s analysis: Severn Trent and United Utilities ally: the dawn of a new era?
Of the water-only companies (WOCS), Affinity Water, Bristol Water, Essex and Suffolk Water, Sutton and East Surrey Water and Cholderton and District Water all tell Utility Week they plan to remain in the market, with South East Water and Cambridge/South Staffordshire Water refusing to comment. And of the WASCs, eight of nine say they will not exit the retail market, with Southern Water saying it is “undecided”.
Other companies have begun positioning themselves for market opening, with Northumbrian Water announcing a rebrand of its business retail arm to ‘Wave’. 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
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