Business energy supplier Yü Energy enters water market

Yü Group chief Bobby Kalar sees strategic value in bundling water and energy to clients

Energy supplier Yü, which suppliers power and gas to SMEs and corporates, will bundle in water services to businesses after Ofwat granted its licence application.

The company will trade as Yü Water.

Selling both water and energy to business clients can potentially deliver savings on administration and procurement costs.

A survey by The Energyst 12 months ago suggested that around nine in ten firms would buy water and energy from a single supplier if it delivered cost savings. TPIs interviewed for the subsequent Directors’ Report suggested consolidated billing may offer savings for large, multisite businesses that may otherwise deal with several regional suppliers.

While some brokers are now leveraging their energy relationships with businesses to supply water, Yü’s move could indicate that more energy suppliers are planning to enter the water retail market, given that both water and energy retail essentially about managing supply and billing customers. Gas supplier Regent acquired a water licence in February.

While some water companies have indicated privately that they may consider entering the energy retail market, no large supplier has yet done so.

Ofwat senior director Emma Kelso welcomed Yü’s market entry: “It’s good news to see suppliers bring different areas of expertise to the water market – with Yü Water bringing theirs from a background in energy,” she said. 

Yü Group CEO, Bobby Kalar, said the firm’s “focus remains on our core offering in the provision of energy, however this enables us to offer a bespoke, value-added service to our customers who seek the flexibility of a one-stop-shop for their utility needs”.

He added that Yü’ Group sees “long term opportunities for the company in the water industry”.

Related stories:

Thames Water cuts power bill £12m via self-generation

Renewable generation boosts Severn Trent profit

United Utilities generates 18% of power from renewables, eyes £55m solar investment

Nando’s seeks water supplier for 400 restaurants

Water supplier required for 300 restaurants

Water competition: Big savings or damp squib?

Nine in ten firms would buy energy and water from same supplier if cheaper

Free report: Key business energy and water risks and opportunities

Click here to see if you qualify for a free subscription to the print magazine, or to renew.

Follow us at @EnergystMedia. For regular bulletins, sign up for the free newsletter.


Please enter your comment!
Please enter your name here