Severn Trent trials summer incentives for businesses to cut consumption

Severn Trent has launched a new trial to save water by incentivising businesses and other large users to reduce demand during the summer months.

The company said the trial was the first of its kind in the water industry, where different approaches will be tested in parallel to investigate which delivers the most water saving.

Under one scheme, retailers paid 25p for every litre they save, working with any customers from the largest to the smallest. Under another scheme, Severn Trent will give retailers 48 hours’ advance notice when demand is forecast to be extremely high. Adopting a similar approach to ‘Triads’ used by the electricity market, businesses will be offered incentive payments to reduce consumption during these peak hours.

The trials launch in May and run for four months. Shane Anderson, director for strategy and regulation, explained that climate change and population growth area putting pressure on demand. And: “It’s a challenge that’ll be brought into sharper focus this summer, as less people travel abroad for their holiday. We expect more families to stay in the UK for the break, which will have an impact.”