With a drought expected this summer and many homes lacking basic energy efficiency measures, Britain's biggest gas and water utilities will pair up next month to help their customers save money by using water and energy more wisely.

Under the agreement which will extend over the next five years, Thames Water and British Gas will work together to promote energy-saving and water-saving products - including solar panels, heat pumps, energy-efficient boilers, shower savers and dual-flush toilets to Thames Water customers.

As a first step in the partnership, believed to be the first of its kind in the UK, British Gas will be offering Thames Water’s water customers free loft and cavity wall insulation which can save them hundreds of pounds off their annual energy bills.

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Explanatory information is set to land on 2.3 million doormats across London and the Thames Valley from next month.

While British Gas installers are in Thames Water customers' homes fitting insulation, they will also offer to fit water-saving devices to help people save even more money and use less water.

By working together, both utilities believe they can benefit their customers while taking steps to achieve their own business goals. Having had below-average rainfall for 17 of the past 22 months in the South East, the water firm wants customers to use less of its product. Meanwhile British Gas has the opportunity to promote its energy efficiency products to a new customer base.

Nina Bhatia, Managing Director of Electrical & Dyno Services at British Gas, said: "We know that household budgets are stretched at the moment which is why energy efficiency can make such a vital difference. Loft insulation and cavity wall insulation can save hundreds of pounds each year off household energy bills. And we are installing it in homes for free. This is just a first step in this partnership and we are excited about offering a range of energy and water saving products to customers in London and the Thames Valley."

(CD/GK)