Severn Trent withdraws its original exit application
Severn Trent Water has withdrawn its original application to exit the business retail market. However, the change is understood to amount to a temporary delay relating to the company’s acquisition of Dee Valley Water rather than a strategic change of heart.
Severn Trent previously announced its exit would be delayed from April to June, for reasons thought to be related to Dee and complications regarding the different competitive situations in England and Wales. Further postponement is not possible. Moreover, exit cannot be reversed. So the company is understood to have withdrawn its original application while the issues are sorted through, with a mind to reapply to exit in due course.
Defra confirmed the move in an update on which companies have been granted permission to withdraw from the market, published mid month.