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Scottish supplier Castle Water has said it would consider buying the business customers of English water companies looking to exit the market when it opens to competition next year.
The company’s chief executive John Reynolds told Utility Week he thought the level of change in the water retail market in England would be “more revolutionary than anticipated”.
The company has applied to Ofwat for a water supply and sewerage licence with a view to “full national coverage” in England.
It is currently the largest independent supplier operating in the English market, after buying the business customer base of Portsmouth Water when it announced it would exit.
Reynolds said it is now looking at a number of other routes to market, including through further acquisitions.
The market is due to open in April 2017, allowing 1.2 million businesses and other non-household customers of providers based mainly or wholly in England to choose their supplier of water and wastewater services. It will link with the existing market in Scotland, which opened to non-household customers in April 2008.
Castle Water was founded to provide water services to business customers across England and Scotland, and already serves more than 20,000 customers across both countries.
Other Scottish suppliers, including Scottish Water subsidiary Business Stream and new entrant Everflow, have told Utility Week they are considering buying into the English market when it opens.
In January, Portsmouth became the first water company to reveal that it would exit the market when competition is introduced. And, 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 remaining 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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