Severn Trent to reward saving water with Nectar pilot

Utilities giant Severn Trent Water has partnered with Sainsbury’s-owned Nectar360, which operates the Nectar loyalty programme, to reward customers for adopting smart meters and reducing water consumption.

The trial Severn Trent Nectar programme – claimed to be a first for the utility sector – is being rolled out with support and funding from the water regulator Ofwat’s Innovation Fund, in recognition of this approach to driving water-efficient behaviours.

Nectar account holders will be able to accumulate extra points when they adopt and demonstrate usage of a smart water meter. Points will also be awarded for reaching water usage reduction targets. A key additional benefit for participants will be lower energy and water bills when they adopt the behavioural changes.

The pilot, scheduled to run for at least a year, will launch in November 2024 and is expected to eventually reach up to 25,000 customers in selected smart meter areas. The smart meters will provide data throughout the period of the pilot to help measure its impact.

The initiative will grow Nectar’s loyalty programme into yet another sector, offering customers a helpful new way of earning points. The firm maintains the partnership is another example of how Nectar continues to develop relevancy and choice with consumers, while delivering even more value for both customers and its thriving network of partners, including Sainsbury’s, Argos, British Airways, Esso and American Express.

Nectar360 managing director Amir Rasekh said: “Our partnership with Severn Trent is an industry first, using a loyalty programme to drive and reward positive behavioural change in how consumers use water. The pilot helps members save money while also being more sustainable in their consumption habits.”

Severn Trent business strategy and development manager Tanvir Razvi added: “Partnering with Nectar360 – with support from Ofwat – represents a huge milestone for us in propelling our sustainability objectives while delivering value for money and a positive customer experience.

“As an industry, water companies have been tasked by the government with bringing domestic consumption levels down to 110 litres per person per day and we’re exploring different and innovative ways to achieve this.

“As part of the pilot, customers can earn points based on measured water consumption thresholds, encouraging them to save water while also saving money.”

As this is a trial, Severn Trent will be inviting specific customers with active Nectar accounts to register with ‘My Smart Tracker’ – which will in turn provide access to informative consumption data – and complete a household survey to allow them to track usage against targets.