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Severn Trent PLC - CMA APPROVES SVT AND UU NON-HOUSEHOLD RETAIL JV

RNS Number : 9479W
Severn Trent PLC
03 May 2016
 

Severn Trent

3 May 2016

 

CMA APPROVES SEVERN TRENT AND UNITED UTILITIES

NON-HOUSEHOLD RETAIL JOINT VENTURE

 

Severn Trent announced on 1 March 2016 that it intented to enter into a joint venture agreement with United Utilities ("UU"), whereby Severn Trent and UU will combine their non-household water and wastewater retail businesses, principally comprising billing and customer service activities, into one business (the "JV").

 

Severn Trent and UU are now pleased to confirm that clearance for the JV has been announced by the Competition and Markets Authority (CMA) today.

 

The JV business will be called Water Plus, and operations will be progressively transferred to the new head office, located in Stoke-on-Trent, over the course of this year.

 

Severn Trent and UU have strong track records in operating and growing successful non-household retail services in Scotland. With the non-household retail market in England opening for competition in 2017, Water Plus will combine the complementary skills of both companies, including sales, customer service, business strategy and credit management, to deliver an attractive proposition for large and small business customers across England and Scotland. Bringing our businesses together will create a JV with the synergies to provide an efficient and cost-effective operation focussed on improved customer service and growth.

 

 

 

Severn Trent contacts

 

Jonathan Smith, Severn Trent Communications                           +44 (0) 7850 602223

Ruban Chandran, Head of Investor Relations                                +44 (0) 7957 166615

David Lloyd-Seed/Jonathan Sibun, Tulchan Communications    +44 (0) 20 7353 4200

 

 

Notes to editors

The economic regulator for the water industry, Ofwat, is opening up fully the water and wastewater non-household retail market in England to competition from April 2017. The retail market principally comprises billing and customer service activities. The non-household market comprises business and other non-domestic users.  Large non-household customers are already able to switch their retail supplier for water services.  All other activities, including retail services to the household market and all wholesale activities in the supply of water and wastewater services are unaffected by this announcement.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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