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South East Water has applied to Ofwat for a sewerage licence, which would allow it to participate in the English business retail market.
The company will trade as South East Water (SEW) ‘Choice’. It said it aims to “build on its strong performance in retailing of water services”.
The firm currently serves around 60,000 business customers across the South East of England.
In its retail plan for business customers for 2015-20, SEW said it wants to work to “develop innovative new services and charges”.
Last week, the firm announced plans to introduce a new charging structure, called a ‘falling block tariff’, for businesses which use more than 10,000 cubic meters of water per year.
IMAGE: South East Water’s supply area
Source: South East Water
IMAGE: South East Water’s business customer base
Source: South East Water
The story so far
In January, Portsmouth became the first water company to reveal that it would exit the market. 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.
South East Water’s application brings the total number of companies to have applied for licences so far to 14, since Ofwat opened the application process. The regulator has predicted that there could be as many as 40 new applications in the coming year.
Thames Water Commercial Services applied, but has since announced its intention to exit, and sell its business customers to Castle Water, which has effectively nonupled in size as a result of the deal.
Business Stream, Cobalt Water and Clear Business Water have all submitted applications, along with Northumbrian Water Business, Pennon Water Services, Severn Trent and United Utilities, Anglian Water Business, Sutton and East Surrey Water Services, South Staffordshire Water Business, Water 2 Business, and Kelda Retail – the business retail arm of Yorkshire Water.
Scottish suppliers such as 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.
United Utilities and Severn Trent announced at the beginning of March that they would team up to create a separate retail business to compete in the water market when it opens.
The Competition and Markets Authority has since cleared the proposed JV, which the companies have announced will be called Water Plus.
Amies-King told Utility Week the firm will be “agile and innovative” and bring in “fresh new ideas from the new people” being recruited.
She said Water Plus was planning to be a “winner in the market”, and wanted to be seen as the “go-to” company for business customers.
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