Yu Water awarded licence to operate in the retail water market
Yu Water, a subsidiary of Yu Group PLC which also operates business energy supplier, Yu Energy, has become the latest entrant to the new retail water market after being granted a licence by regulator Ofwat, allowing it to offer water services in England and Wales.
Yu Water intends to enter the non-household water market in water supply only, building upon its experience in the energy market for customer service and billing. There are now 24 retailers operating in the market, providing even greater choice for non-household customers in England.
The retail water market, which launched on 1 April, is the largest of its kind in the world and allows businesses, public bodies and charities to ‘shop around’ to choose the best retailer for them, rather than having to use their local water supplier, as has been the case until recently.
Licensed retailers buy wholesale water services – the physical supply of water and the removal of wastewater – from the regional water companies, which continue to supply physical water to each premises. Retailers can package these water services together with other services to develop bespoke packages to suit individual business needs, ranging from customer service to water efficiency.
Ofwat Senior Director Emma Kelso said:
“It’s good news to see retailers bring different areas of expertise to the retail water market – with Yu Water bringing theirs from a background in energy. We are continuing to see thousands of non-household customers interacting with the market across England by taking full advantage of either renegotiating with their existing retailer or shopping around for the deal that suits them best. Greater competition in the market will result in more choice and better deals for customers”.