what does it offer you?
Competition has been in the utility industry for a number of years through Gas, Electricity and Telecomms. The purpose of introducing competition is to offer customers choice and the best service for the right price. Deregulation of the water industry is being managed primarily by Ofwat and the licensees to maximise benefits to customers and to protect water quality.
Competition in the water industry provides two key opportunities for organisations, both of which are available through Severn Trent Select. We have developed a portfolio of products and services which focus on identifying efficiencies in your water use to help you bring costs down and become more compliant with legislation.
As a new licensee, Severn Trent Select can offer eligible customers water supply. On the whole, Industrial and Commercial water users in England and Wales with consumption on a single site equal to, or greater than 50 Ml (50 000 m3) are eligible to choose their supplier. This is currently under review and the threshold is likely to be reduced in the near future. Water can be purchased either through Common carriage or Retail supply.
Common carriage is where a licensee puts water into another company’s network and pays for the transportation to the customer.
Retail competition allows licensees to purchase water from a supplier to sell to the end customer. The origin of the water will remain the same however the customer will have their service interface with their new supplier, i.e. their bills and customer contact from Severn Trent Select.
In order for the new licensee to provide either of these services to a customer, they must first have a formal arrangement with the network owner to agree reasonable terms and in the instance of common carriage, to protect the network and the quality of the water you receive.
Competition in England and Wales is evolving slower than anticipated due to the current pricing model. Severn Trent Select is continuing to lobby the relevant stakeholders to review the situation. This will enable us to pass on greater savings and provide the best value to our customers.