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Severn Trent and UU apply for supply licence for Water Plus

Severn Trent and United Utilities have applied for a water and sewerage supply licence for their joint venture Water Plus, which would allow the company to participate in the new water retail market when it opens in England.

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.

In their synopses, the companies said: “Water Plus is a Joint Venture between United Utilities and Severn Trent. It has been established with a clear strategy to deliver exceptional service, leveraging an experienced workforce and lean operation structure to serve all major customer segments, both in and out of area.

“Water Plus has a comprehensive view of the required financial resources, and ensured appropriate funding arrangements are in place to support ongoing activities.”

This latest application brings the total number for companies to have applied for licences to eight, 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 StreamCobalt Water and Clear Business Water have also submitted applications, along with Thames Water Commercial Services, Northumbrian Water Business – which has rebranded as Wave – and Pennon Water Services – a joint venture between South West Water and Bournemouth Water.

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.

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