Business energy supplier eyes English water retail market

Business energy supplier Corona Energy is looking at the possibility of entering the English water retail market when it opens to competition next year.

A spokesperson for the company told Utility Week: “We are currently reviewing opportunities in water but have yet to decide upon how, when and whether to enter the water market.”

Corona is the third energy supplier to have expressed tentative interest in the market so far.

Ecotricity chief executive Dale Vince exclusively told Utility Week last month that the company is interested in the water market, and would look to bring “an eco-approach to water”.

And Regent Water – a subsidiary of gas supplier Regent Gas – applied to Ofwat for a water supply and sewerage licence (WSSL). It said it wants to supply water and offer further services to small, medium-sized and large corporation businesses across England and Wales, through independent energy brokers.

Larger energy suppliers such as the big six have so far been silent on their plans, leading many to suggest they may not be interested unless the domestic water market opens.

However, the water market has experienced a surge of activity ahead of the onset of competition.

So far, Portsmouth Water, Southern Water and Thames Water have announced plans to exit the market. Scottish retailer Castle Water will take on the business customers of Portsmouth and Thames, while Southern’s customers will be handed to Scottish incumbent supplier Business Stream.

The total number of companies to have applied for licences since Ofwat opened the process now stands at 17. The regulator has predicted as many as 40 new applications in the coming year.

Earlier this month, it granted the first nine licences to successful applicants.

The companies which have now have now obtained WSSLs are: Anglian Water Business; Castle Water; Clear Business Water; Kelda Retail – now part of Three Sixty – Northumbrian Water Business – now Wave – Severn Trent and United Utilities, on behalf of Water Plus; South Staffs Water Business; Sutton and East Surrey Water Services; and Water 2 Business – a joint venture between Wessex Water and Bristol Water.

Companies which have submitted applications which have not yet been granted are: Business Stream; Cobalt Water; water management firm Waterscan; commercial gas supplier subsidiary Regent Water; Pennon Water Services; and newly rebranded Affinity for Business.

South East Water Choice has applied for a sewerage licence only, in order to provide its existing customers with a combined water and sewerage bill.

Small Scottish supplier Everflow told Utility Week it is considering buying into the English market when it opens and will be applying for a licence soon. Veolia UK has also said it wants to grow its retail activities in the market, but has not yet applied for a licence.

New entrant Blue Business Water also told Utility Week it will apply for a licence before Ofwat’s deadline. Director Chris Clark stressed that it is keen to acquire the customer bases of companies looking to exit.