CMA clears Pennon’s purchase of SES Water

The Competition and Markets Authority (CMA) has cleared Pennon Group’s acquisition of SES Water.

The watchdog formally accepted Pennon’s undertakings in lieu of reference for the completed acquisition of SES Water parent, Sutton and East Surrey Group Holdings.

The undertakings included: 

• Sharing 50% of merger specific cost efficiencies with customers via Pennon’s WaterShare+ scheme, at the latest by 2030.

• Foregoing the small company premium SES applied for in its PR24 business plan, should this be granted by Ofwat.

• Providing separate (and independently assured) cost and performance information to Ofwat for wholesale and retail activities, including to enable separate price controls to be maintained. 

• The SES region will be represented at the WaterShare+ Customer Advisory Panel. 

The Pennon Group now serves over 4m customers and includes South West Water (including Bournemouth Water), Bristol Water, SES Water and two business retailers – Pennon Water Services and Water2Business.