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Our comment: Water competition – an opportunity for efficiency.

The facts

From April 2017 businesses and other non-household organisations in England will be able to choose the company that provides their retail water, rather than being restricted to buying from their regional water company as has been the case. Retail suppliers will compete for customers by offering them the best deal. It’s hoped that competition in the retail water market will result in better value for money, lower bills and charges, improved customer service and greater water efficiency. However, a recent survey by Ofwat suggests that two thirds of organisations are not even aware of these market changes. Unless customers switch, they will stay with their existing supplier. Businesses, the public sector and the third sector will all have access to the open market as long as they are eligible, which is likely if their premises are used mainly for business and they are supplied from a wholly or mainly English-based water company.

The benefits
At SWM we hope that competition will encourage organisations to:
  • Look closely at their water consumption and ensure that they are using water as efficiently as possible
  • Make sure that meters are accurate and that meter readings are used to help drive efficiency
  • Carry out bill validation to ensure they are on the correct tariffs for their consumption, surface water drainage, and wastewater
  • Consider impacts of extreme weather associated with climate change, and how this may effect them (e.g. drought and water shortage)
Water is often much less visible to organisations than other utilities such as gas and electricity. However, we’d encourage you to ‘get your house in order’, putting you in the best possible position when negotiating with potential retail suppliers. The support available It’s a big change to the way water has been provided for years and there will be challenges for organisations in getting the best from competition. However, we can learn from Scotland where competition was introduced in 2008 and has been largely successful with organisations already seeing the benefits of improved water efficiency and cost savings. Please contact us if you would like support on water competition. We’re hoping to run a workshop soon providing full details of water competition, how it will affect you, tools and support available, and case studies we can learn from. Watch this space. The Open Water website has full details about competition including guides on eligibility and choosing a supplier.

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