This week it was announced that United Utilities and Severn Trent, two of Britain’s largest utility companies, have been given approval to create a joint venture to compete to supply water to businesses.
The joint venture, which will be called Water Plus, will help to provide an efficient and cost-effective solution with a focus on improving customer service and growth. This will be done by combining skills such as business strategy, credit management, customer service and sales.
This new deal comes a year before the commercial market officially opens in April 2017, when 1.2m business customers will be free to choose their supplier.
This is the second high-profile merger in as many years, after we saw Pennon complete the takeover of smaller rival Bournemouth Water back in April 2015, which was thought to cost in the region of £100m.
This is a very exciting and innovative joint venture, as it will help move away from the current regional monopoly framework and embrace healthy competition within the utilities market.