South East Water sets out national retail ambitions

South East Water has set out its ambitions for the non-household water retail market, which will include growing market share nationally.

South East Water Choice managing director James Dubois told Utility Week: “Looking after our existing customer base is the primary focus. But we do have some national ambitions, those will start with servicing the national branches of our local customers.

“To give us the ability to do that, we also have to have the water supply and sewerage licence to operate out-of-area.”

He continued: “We’re using Invicta Water – a dormant company which doesn’t have any transactions on it – as a vehicle to operate out-of-area, trading as Water Choice South East. We do see at some stage, date unknown, transitioning all our customers into Water Choice South East.”

South East Water applied for a sewerage licence in August, to allow it to offer sewerage services to the 55,000 business customers it currently provides water services to.

“The sewerage licence gives us the ability to provide a dual service to our customers within area,” said Dubois. “I see that as a key tool to retain our existing customers.”

He said the company has a good relationship with its customers, and it makes sense to be able to offer them one bill, payment and point of contact.

The company shares supply areas with Southern Water and Thames Water, both of which have announced their intentions to exit the business retail market.

Dubois said the two Scottish retailers which have bought these customers – Business Stream and Castle Water – are particular competitors, and both have a lot more experience in competitive markets.

However, he said, because those customers don’t have a relationship with their new supplier, they might be more open to looking at an alternative.

“I think we’ll only know that when we start speaking to them,” he added. “It will be interesting to see how that pans out.”