Severn Trent and United Utilities (UU) have joined forces to combine their non-household water and wastewater retail businesses.
The joint venture (JV) will serve non-household customers when they are able to choose their retail water supplier from April 2017.
The two companies will combine their customer-facing activities including sales, customer service, business strategy and credit management for large and small business customers across England and Scotland.
Severn Trent will pay £3.5 million towards the 50:50 partnership and will also share the cost of systems development.
Steve Mogford, UU CEO, said: “We have been an early mover in building a strong non-household retail capability and have already established a sizeable presence in Scotland. This early progress, supported by our new customer relationship management system, means that we are well positioned for full market opening in England.
“The JV will combine the complementary skills and capabilities of UU and Severn Trent to improve our competitive offering for customers, increase efficiency and enhance value for shareholders.”
The agreement is subject to clearance from the Competition and Markets Authority, which the companies expect to obtain this spring.