Energy giants 'poised to supply water to firms'

Energy giants such as British Gas owner Centrica are likely to make the move into supplying water to business customers when the market is opened up next year, according to industry bosses.

Ben Jeffs, chief executive of Market Operator Services, the body responsible for preparing the sector for full competition, said: “I wouldn’t be surprised to see Centrica moving in after the market opens.

“There is multi-utility opportunity for players already supplying gas and electricity. I could easily see them making the move into water.”

As many as 1.6 million businesses, charities and public bodies in England will be able to “shop around” for their water supplier in a historic deregulation of the market scheduled for next April.

No final decision has been taken on whether competition will be extended to domestic households but regulator Ofwat, led by Cathryn Ross, is due to publish a paper on the option in July.

George Osborne said in November he wanted to see moves towards full domestic competition by 2020.