South Staffordshire Plc joins forces with Pennon to create fourth largest non-household water retail business
South Staffordshire Plc joins forces with Pennon to create fourth largest non-household water retail business
South Staffordshire Plc and Pennon Group plc have today announced a joint venture (JV) that will create the fourth largest non-household water retail business operating as Pennon Water Services (PWS).
The partnership strengthens South Staffordshire Plc Group’s ability to respond to the water retail market opening from April 2017, when businesses and other non-household customers in England will be able to choose who they buy their water and waste water services from.
The Group’s existing in-area trading names of South Staffordshire Water Business and Cambridge Water Business will be retained, with Source for Business being the out-of-area national brand name.
As part of the JV, Pennon will take an 80% equity stake in the enlarged PWS, with South Staffordshire Plc taking the remaining 20%.
The JV will deliver a combined customer base of 180,000 accounts, making PWS the 4th largest retailer in the non-household retail water market, with 8% market share.
Adrian Page, Chief Executive at South Staffordshire Plc, said: “We’re delighted to join forces with Pennon. This joint venture will deliver a bigger national footprint and increased opportunities for growth and service delivery.”
Pennon’s Chief Executive Chris Loughlin added: “We’re pleased to team up with the South Staffordshire Group, combining our expertise and creating a bigger business retailer, with excellent growth potential.”
South Staffordshire Plc Group, which includes South Staffs Water, Cambridge Water and Echo Managed Services, also owns the Rapid billing system which will continue to be used by the enlarged PWS business across its consolidated customer base.
As is normal, the JV is subject to competition clearance.