Pennon gears up for market opening

Pennon Water Services has become the latest company to apply to Ofwat for a licence which would allow it to operate in the English water retail market when it opens to competition next year.

The company applied for a water and sewerage supply licence. It said it intends to develop services for business customers across Great Britain, and ensure it is “easy to do business with”.

“Our customer proposition is built on simplicity and transparency, with retail service plans and water hygiene, water efficiency and water management services to help customers save water and save money,” it said.

A total of seven companies have now applied for licences since Ofwat opened the application process for those wishing to provide retail services in the new market.

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 Business Stream, 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 stated their intention to team up and create a new, separate retail business, which was subsequently named Water Plus.

Utility Week understands Anglian Water is also set for a rebrand, along with at least one other WASC.