Gas supplier subsidiary targets water retail market

Regent Water, an associated business within commercial gas supplier Regent Gas, has applied to Ofwat for a water supply and sewerage licence, which would allow it to participate in the water retail market when it opens.

Regent Water said it aims to supply water and offer further services to small, medium-sized and large corporation businesses across England and Wales, through independent energy brokers.

Regent Gas is a privately owned British business gas supplier formed in 1995, which provides natural gas, connection and metering services to businesses in England, Scotland and Wales.

Regent Water was incorporated on 12 June 2015, and was granted a supply licence in Scotland in February this year.

This is the sixteenth application for a licence since Ofwat opened the process in April.

With less than a month until the shadow market opens, Affinity Water remains the only incumbent English company, aside from those looking to exit, which has not applied for a WSSL. The company said it will set out its plans this month, and that it wants to remain in the market.

So far, Portsmouth Water, Southern Water and Thames Water have announced plans to exit the market. Scottish retailer Castle Water will take on the business customers of Portsmouth and Thames, while Southern’s customers will be handed to Scottish incumbent supplier Business Stream.

The total number of companies to have applied for licences since Ofwat opened the process now stands at 16. The regulator has predicted as many as 40 new applications in the coming year.

Scottish players Castle Water, Business Stream, Cobalt Water and Clear Business Water have all submitted applications to participate in the English market. As has water management firm Waterscan.

English incumbents which have applied for licences are: Northumbrian Water Business – which has rebranded as Wave – Pennon Water Services, Anglian Water Business, Sutton and East Surrey Water Services, South Staffordshire Water Business, Water 2 Business, and Kelda Retail – which has been incorporated into Kelda Group’s new retail arm Three Sixty.

South East Water Choice has applied for a sewerage licence only, in order to provide its existing customers with a combined water and sewerage bill.

Severn Trent and United Utilities have also applied for their joint venture Water Plus, which was announced at the beginning of March. Chief executive Sue Amies-King told Utility Week that Water Plus would be “agile and innovative”, and bring in “fresh new ideas” from the new people being recruited.

Small Scottish supplier Everflow told Utility Week it is considering buying into the English market when it opens and will be applying for a licence soon. Veolia UK has also said it wants to grow its retail activities in the market, but has not yet applied for a licence.

New entrant Blue Business Water also told Utility Week it will apply for a licence before Ofwat’s deadline. Director Chris Clark stressed that it is keen to acquire the customer bases of companies looking to exit.