Severn Trent Water in multi-utility supply deal

Severn Trent Water has signed a deal with Atlantic Electric & Gas to sell gas and electricity as well as water to its 3.5 million customers. This is the second time that the water company has teamed up with a utility company to supply gas and electricity.

In the past, Severn Trent dealt with now-defunct Amerada Hess, which was bought by TXU Energi early last year. TXU Energi has since been acquired by Eon-owned Powergen.

Under the deal, Severn Trent customers will be able to buy gas and electricity directly from the water company.

Atlantic Electric & Gas launched three years ago and has more than 200,000 customers.

Last year, there was speculation that rival South West Water had entered discussions with British Gas to cross-sell gas and electricity (MW March 14, 2002) although no venture has materialised.

The UK’s water market, unlike those for gas and electricity, has yet to be fully deregulated. British Gas, the country’s largest supplier of gas and electricity, at one point set up a water division to explore the possibility of selling water to its customers. This was disbanded, however, late last year.