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Severn Trent has launched a new trial to save water by incentivising businesses and other large users to reduce demand during the summer months.

This trial is the first of its kind in the water industry, where different approaches will be tested in parallel to investigate which deliver the most water saving. Under the new scheme, water retailers who deal directly with business customers, from small independents to the largest national chains, will be paid 25p for every litre they save.

Another approach includes plans to give retailers advance notice when demand is forecast to be extremely high. Adopting a similar approach to ‘Triads’ used by the electricity market, businesses will be offered incentive payments to reduce consumption during peak hours.

Retailers will be given 48 hours’ notice of a ‘high peak’ period, where incentive payments will be available.

Shane Anderson, Director for Strategy and Regulation at Severn Trent, said: “We all know that climate change and a growing population is putting increasing pressure on water companies to keep up with demand.

“It’s a challenge that’ll be brought into sharper focus this summer, as less people travel abroad for their holiday. We expect more families to stay in the UK for the break, which will have an impact.

“That’s why we’re really excited to launch this new water efficiency trial with retailers. By incentivising them to use less water during times of peak demand, we hope it’ll help us to protect this most precious resource.”

Shane added: “Encouraging businesses and other large others to be more water efficient in this way could bring huge environmental benefits too. This approach could help us to reduce our carbon footprint, by trying to change behaviours instead.”

The trials launch in May, running over four months, all with the shared aim of getting businesses and other large users to become more water efficient.