The world’s biggest competitive water market opens today (1 April), representing the biggest shake up to the UK water industry since privatisation.
It will give more than a million businesses, charities and public sector bodies in England the chance to choose their water services retailer.
Eligible customers can choose from more than 20 licensed companies to provide services such as billing, account management, metering and water efficiency advice.
Ofwat Chief Executive Cathryn Ross said: “Business customers have been crying out for choice over their provider of water and waste water services for years. From today businesses, charities and public sector organisations in England will be able to choose their retailer; they will be able to use that choice to get a better deal.
“The opening of the business retail market takes us into new territory. The new market will be more dynamic and unpredictable.”
Reducing water costs
Robert Gazely, farming consultant at rural organisation Strutt & Parker, says the introduction of a competitive water market may offer farmers an opportunity to reduce their water costs and benefit from improved levels of service.
He says major water suppliers such as Anglian Water, Thames Water, Severn Trent and United Utilities have developed separate business divisions in order to compete in the new open water market.
He said: “Farmers will be free to choose their retailer by looking at who has the best deal for them. While it is not possible to make the switch until April, businesses can start to look at the options now,” he says.
Mr Gazely says the opening up of the water market will particularly benefit businesses with multiple sites – as they will be able to choose one supplier for all sites and receive a single bill.
£200m worth of benefits
Environment Secretary Andrea Leadsom welcomed the launch of the market, which will deliver up to £200 million of benefits to the economy and water customers over the next 30 years, through improved service and better value for money.
She said: “Over a million businesses, charities and public sector organisations will now be able to find the water deal that works best for them. Opening the market is an historic milestone, paving the way for innovation and efficiency and giving customers the same choice over their water retailer as they currently have for their energy and other essential services.”
The programme to open the market, called Open Water, has been a partnership of Defra's Ofwat, which will regulate the new market, and Market Operator Services Ltd (MOSL), which will operate the market on behalf of its water company members, to ensure there is a smooth transition for customers.
