Severn Trent has launched a new incentive scheme in partnership with Nectar360, which owns and operates Nectar, rewarding customers for adopting a smart meter and reducing their water usage.

The scheme will see Nectar account holders rewarded with extra points for demonstrating lower water usage through their smart meters.

Launching in November 2024 and scheduled to run for 18 months, Severn Trent will select the customers who will take part in the scheme, from those who have already adopted a smart meter.

The scheme will see around 25,000 Severn Trent customers sign up, with those who reduce their usage also likely to benefit from lower energy and water bills.

It also marks an industry first partnership in which a water company has partnered with a loyalty programme to reward its customers for highlighting good water consumption trends.

Tanvir Razvi, Business Strategy and Development Manager at Severn Trent, said:

"Partnering with Nectar360 - with support from Ofwat - represents a huge milestone for us in propelling our sustainability objectives while delivering value for money and a positive customer experience.

“As an industry, water companies have been tasked by the government with bringing domestic consumption levels down to 110 litres per person per day and we’re exploring different and innovative ways to achieve this. As part of the pilot, customers can earn points based on measured water consumption thresholds, encouraging them to save water while also saving money.”

Amir Rasekh, Managing Director at Nectar360, commented:

“Our partnership with Severn Trent is an industry first, using a loyalty programme to drive and reward positive behavioural change in how consumers use water. The pilot helps members save money while also being more sustainable in their consumption habits.”

The scheme has received support from the Ofwat Innovation Fund, established to grow the water sector’s capacity to innovate and better meet the evolving needs of customers, society and the environment.