Scotland’s biggest non-domestic water supplier Business Stream has bought the non-domestic customer base of Southern Water, strengthening its position as it prepares to compete in the English water market which is due to open in April 2017.

The deal, which takes effect from April next year, will create the third biggest company in the UK non-domestic market for water and waste water services, with a combined market share of over 10%. Up to 40 new jobs will be created in Business Stream’s Edinburgh headquarters as a result of the acquisition.

From 1 April 2017 around 1.2 million businesses and public bodies in England will be able to choose their water supplier. Competition will encourage water suppliers to offer innovative new services, keener prices and improved service levels.

Scotland created the world’s first non-domestic water market in April 2008. In the eight years since, Business Stream’s customers have benefited from more than £133 million in savings and conserved more than 24 billion litres of water through water efficiency initiatives.

The acquisition by Business Stream is a significant milestone in its plans to win new customers in England, where its existing customers include House of Fraser and Bernard Matthews. Southern Water serves around 105,000 non-domestic customers across Kent, Sussex, Hampshire and the Isle of Wight. The deal will almost double the size of Business Stream’s customer base.

Jo Dow, Business Stream Chief Executive, said: “The acquisition of Southern Water’s customer base provides us with a springboard for growth ahead of the English market opening next year. The new market will create huge opportunities for Business Stream. We are ideally placed to secure market share by leveraging our knowledge, capability and experience, gained from eight years of operating in the highly competitive Scottish market.”

“The addition of Southern Water’s customer base provides Business Stream with increased scale which will enable us to continue delivering a first class service, to invest in initiatives which will enhance that experience, and to deliver savings for all our customers. By creating the third largest UK non-domestic water supplier, we have also forged a bright future for our existing workforce, creating new jobs and building a foundation for growth when the English market opens fully.”