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Incumbent Scottish water retailer Business Stream has applied to Ofwat for a supply licence which would enable it to participate in England’s non-domestic water market when it opens in April next year.
The company said the move is “another significant milestone” in its plans to win new customers in England, whilst retaining a healthy market share in Scotland.
Business Stream already has a number of large business customers based in England, including House of Fraser and Bernard Matthews.
Business Stream chief executive Johanna Dow said: “Business Stream aims to grow a sizeable foothold in England when the market opens in 2017 and we are exploring all options to help us achieve that. Building on our successes in England, we are already engaging with potential customers about the benefits they could realise by switching to Business Stream.
“The opening of the English water market is just one element of our business strategy. Business Stream remains the market leader and supplier of choice in Scotland and our existing customers will remain our key priority. To that end, we are continuing to invest in customer service improvements and offering value for money tailored services.”
A total of six companies have now 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 supplier Castle Water bought the business customer base of Portsmouth Water when the water-only company announced it would exit the market.
Castle Water subsequently applied for a water supply and sewerage licence, and has set its sights on English market expansion.
Fellow Scottish retailers Cobalt Water and Clear Business Water have also submitted applications, along with Thames Water Commercial Services and Northumbrian Water Business – which has rebranded as Wave.
Other suppliers, including 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. Early in March, Severn Trent Water and United Utilities (UU) stated their intention to team up and create a new, separate retail business which was subsequently named Water Plus.
South West Water teamed 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.
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