Businesses to enter open water market

The water industry is set for big changes as from April next year businesses and non-household customers in England will have the option to pick their own supplier of water and wastewater retail services.

The new regulations will not apply to household customers and non-eligible businesses.

Currently, only those businesses that consume over five million litres of water (50 million in Wales) can select their provider. However, come April next year most non-household customers of suppliers based wholly or mainly in England will be able to choose both their water and wastewater retailer. They will no be longer restricted by a minimum amount of water consumption.

It is estimated that around 1.2million more customers will be able to take advantage of the new freedom when the water market opens.

Eligibility will be mostly determined by whether premises are primarily used for business, rather than domestic use. Also, where an existing water and/or wastewater supplier is based.

Those eligible will be able be to compare their choice of water and waste water retailer much like they would with other utility services such as gas and electricity.

Customers are free to shop around now for the best deal but will have to wait until April 2017 before the switch over can take place.

The government believe that opening up the market, over £200 million could be delivered in financial benefits to the UK economy.

This will take the shape of reduced bills coming through a result of greater water efficiency and standards of service.

It is envisaged that suppliers will be able offer more bespoke services to suit individual companies’ requirements.

The new open market conditions will bring with them levels of protection for customers.

The power to leave and move to a new contract with a different supplier will work as it does currently with gas and electricity providers.

There is a maximum price or default tariff that customers can be charged for the standard level of service should they decide to remain with their current suppliers.

Suppliers will be expected to provide basic guaranteed standards of service (GSS) and they will have to pay a fixed price when these standards aren’t met.

Customers will remain with their existing supplier unless they choose to switch to another.

Customers who choose to switch will receive a formal contract of the price and services to be provided and will afford the same legal protections as any other agreement for the supply of goods and services.

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