Ofwat has approved an application by Severn Trent Water to vary its area of appointment which would enable the company to become the water supplier for Dee Valley Water customers located in England.
This includes 49,700 households and 4,000 business customers (including charities and public sector organisations) in Chester as well as surrounding areas like Cheshire, Shropshire and the Wirral.
Ofwat has also approved an application by Dee Valley Water which will allow the company to start providing water and wastewater services to Severn Trent Water’s Welsh customers in Powys and Monmouthshire.
The variations mean Dee Valley Water will become a water and wastewater services company based wholly in Wales and Severn Trent Water will become a water and wastewater services company based wholly in England.
Ofwat’s decisions are conditional upon Severn Trent Water and Dee Valley Water consenting to changes to the conditions of their Appointments.
Severn Trent Water acquired Dee Valley Group plc, the ultimate holding company of Dee Valley Water, in February 2017. Although they are still separate companies operating under separate licences, both Severn Trent Water and Dee Valley Water are part of the Severn Trent Plc group.
Severn Trent Water currently serves around 4.3 million households and businesses in its area which covers an area from the Bristol Channel in the south to the Humber in the north, and from mid-Wales in the west across to the East Midlands. The vast majority of Severn Trent Water’s customers are located in England but some customers are located in Wales.
Dee Valley Water supplies water only services to approximately 258,000 customers across Chester and North East Wales and North West England. The majority of Dee Valley Water’s customers are in Wales.
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