Anglian and Northumbrian unveil retail tie up but will each go solo pending CMA
Anglian Water Business and NWG Business last week released news of their non household retail joint venture. The companies plan to proceed separately into the market and compete as standalone players until the 50:50 JV, branded Wave, gets CMA clearance.
Wave will have a starting customer base of c250,000, putting it approximately joint second with Castle Water in terms of market share.
The move has been driven in large part by cost efficiency, given the tight cost to serve allowances and retail margins available to suppliers. But the companies also point out that their service propositions are complementary: AWB is a water management and efficiency specialist, and NWGB very experienced in industrial services including trade effluent and wastewater treatment.
Wave will also supply electricity and gas, with details of the energy partnership to follow.