Switch and save on water
Open market
Deregulation of the retail water market in England for non-residential customers opened on 1 April 2017. The market works like many other open utility markets (such as electricity and gas). Retail suppliers buy wholesale services, (the physical supply of water and/or removal of wastewater), and offer a package to sell to eligible customers.
Freedom
The change meant 1.2 million non-household customers could buy their supply from any regulated provider. You are also free to choose one retailer for your water and another for wastewater services if you prefer, or just one for both.
Water savings. A report by YouGov and SES Business Water (see The next step ) notes: “The open water market also increases the visibility of this essential utility, raising awareness of the ways businesses consume water. This can improve water efficiencyand support sustainability - in turn helping businesses to further cut costs, as well as helping the environment. Small businesses should also be able to gain access to new and improved products and added-value packages.”
Slow flow
Ofwat, the water regulator, has found that only 48% of businesses were aware of the changes at the outset. It published a detailed analysis of the changes. To summarise, it found that just 10% of eligible businesses had switched, renegotiated or “explored their options”. Of those that have looked for a new deal, 70% found it easy to do so; 72% said it was easy to compare prices; 20% of businesses that switched managed to negotiate on prices; most deals (79%) are between one year and two years, so you’re not tied for too long.
Slow to switch. The main reasons for not switching seem to be that businesses don’t see water as a priority, and they are happy with the current provider. Some feel the savings are not worth the perceived hassle.
Are the savings worth it?
Ofwat’s research on this is a little dated, but it shows that 41% said they had saved between 46% and 50%, though 49% said their bills had come down by only 10% or less. Tip. By switching, you can expect to see a reduction in your water bills thanks to more competitive pricing. Those savings can be maximised by consolidating water and wastewater services, as well as services for multiple sites.
£500 difference. According to one comparison site, the average water bill paid by a small business using 200m3 of water a year can range from £484 to over £1,000.
Water efficiency
It’s not the lower prices that can help you save money here. Some water companies offer tailored services to help you cut consumption, and offer better data on your use and smart metering. This can all help to lower your water bills and help you better track what you are using as a business. Tip. Make the most of your freedom to change water supplier. Finding a new deal is relatively straightforward; there are comparison sites as well as the open-water.org.uk site (see The next step ). Tip. You don’t have to switch. If you find a cheaper deal, ask your current supplier to match it.
For the report and a link to open-water, visit https://www.tips-and-advice.co.uk , Download Zone, year 22 issue 13.
Create your profile to unlock this advice and many more.