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Dee Valley Water acquisition stalls Severn Trent exit from non-domestic competition
Severn Trent has announced it will delay its formal exit from the non-domestic water retail market while it works through licence changes and the integration of Dee Valley Water, which it recently acquired.
It said this will avoid confusion for its customers.
Severn Trent intends to exit the competitive market via a transfer of its business customers to Water Plus, a retail joint venture set up by Severn Trent and United Utilities last year.
The water firm confirmed for Utility Week last week that its has formally delayed this process, however, while it focusses on assimilating the Dee Valley business. It will now look to exit in June rather than April.
Severn Trent insisted that this will have “no impact” on its readiness for market opening, and that it is “eager to get going on 1 April”.
A spokesman for the company told Utility Week: “We’re in constant dialogue with Water Plus, and will continue to work with them to make all necessary arrangements to ensure our customers continue to receive an excellent service.”
Severn Trent originally revealed that it would look to delay its retain market exit in a document from the Department for the Environment, Food and Rural Affairs.
The same document flagged Yorkshire Water’s intention to u-turn on the transfer of its business customers to its retail spin-out Three Sixty. There are now market rumours that it intends to sell off its non-domestic customer book completely.
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