The companies hope the joint venture utilising both companies’ experience will help them become ‘one of the most effective players in this exciting new market.’
With the commercial market officially opening in April next year, when 1.2 million business customers will be free to choose their supplier, it will bring together the business market teams from both firms.
The new business’ chief executive will be Sue Amies-King, currently business retail director at UU, with Stuart Howell, currently head of finance and business planning for business services at Severn Trent, named as chief financial officer.
Liv Garfield, chief executive of Severn Trent, said: “I’m delighted to be working with United Utilities in creating this joint venture to use both of our experiences as the industry moves closer to the exciting opportunities presented by the opening of the non-household retail market.
“We firmly believe this innovative joint venture can give customers a market-leading experience. Together, we can become one of the most effective players in this exciting new market, while also ensuring our future customers across the UK get the best possible service.”
Both Severn Trent and UU have successfully entered the business market in Scotland, which has been open to competition since 2008.
The deal still has to be approved by the Competition and Markets Authority before it can begin to trade but both companies are confident of approval.