Energy retailer sets sights on UK water market

Energy subsidiary Yu Water says it wants to enter the non-household water supply market

New entrant Yu Water has made a bid to enter the UK non-household water retail market.

The company has applied to Ofwat for a water supply licence, which would allow it to supply water retail services only.

Yu Water is a subsidiary of independent business energy supplier Yu Energy, which was established in April 2014 and said it has the vision of becoming “the UK’s most innovative energy supplier”.

The majority of energy suppliers remain unconvinced that the business water market will be worth entering when it opens in April, and say they have “no plans” to do so.

In a straw poll conducted by Utility Week in February, only Yu Energy, D-Energi, Xcel Energy, and Corona Energy said they had plans to enter the water market. Meanwhile, BES Utilities, Flogas, and Robin Hood Energy said “maybe”.

Most suppliers, including Flow Energy, Good Energy, Hudson Energy, Haven Power, Engie, Dong Energy, Smartest Energy and Co-operative Energy, all said they have “no plans” to enter the market.

Of the big six, Eon, British Gas and SSE declined to comment, EDF and Npower said they had “no plans”, and Scottish Power did not respond to a request for comment.

Utility Warehouse said it intends to move into the domestic market if and when it is deregulated, but it has no plans to enter into the business water market “at the present time”.

Regent Water – a subsidiary of gas supplier Regent Gas – applied to Ofwat for a water supply and sewerage licence in September last year. It was granted its licence in February this year.

Ecotricity chief executive Dale Vince exclusively told Utility Week in an interview late last year that the company is interested in the water market, and would look to bring “an eco-approach to water”.