Water market deregulation in England
Water deregulation in England – an aid to navigation
In April 2017, water industry deregulation will start in England, giving businesses, charities and public sector organisations the ability to shop around and switch retail service provider.
Until now, only non-domestic customers in Scotland and very high water users (over 50ML a year) in England and Wales could switch water and wastewater supplier. If others were unhappy with the service they received, all they could do was complain.
This situation will change when the water market opens for competition in England. It means about 1.2 million customers will be able to pick and choose retail providers based on customer service, the package being offered and differences in charges. Wales has decided not to deregulate.
So what opportunities will competition bring to your organisation? Water experts from Utilitywise, the UK’s largest energy consultancy, say the Scottish experience provides a steer on what lies ahead.
Lessons from Scotland
Scotland became the first country in the world to deregulate its water market in 2008. Since opening it up to competition, customers have seen a raft of benefits including savings in water charges, fewer CO2 emissions and water efficiencies, as well as better monitoring and understanding of water use.
“Water deregulation in Scotland happened when the Scottish government decided it was dissatisfied with the monopoly held by Scottish Water,” said Tony HItchens from Utilitywise.
“It deliberately enforced a split in Scottish Water’s business between wholesale – the infrastructure arm – and retail, which sent bills out and collected the cash. Business Stream was formed to run the retail side, while Scottish Water owned the wholesale part.”
Licensed providers were then able to offer a discount to customers by buying water at the same price Scottish Water was supplying to Business Stream – taking advantage of the increased margin between the wholesale and retail price.
A couple of years later, after a rebalancing of the market created even greater margins, any business or organisation with a water bill could benefit from a significant discount.
“When the English market deregulates, the margins will be small at first because the wholesale price is artificially inflated by the country’s 14 water companies,” said Tony.
“So we expect there will be little price advantage initially, although businesses and organisations will see some modest savings.”
However, deregulation will benefit your organisation in another significant way, especially if you have more than one branch or site.
As well as being able to tap into real choice, you’ll also receive one unique bill for all your branches. It means, instead of having different sites across the UK receiving bills from each area’s water company, you will get one consolidated, multi-site bill.
Three years later, in 2020, you will see big savings begin – like they did in Scotland – when industry watchdog Ofwat intends to force the wholesale price down and rebalance the market.
For organisations plotting a course in England’s new open waters, good seamanship will be a must, especially as the environment is complicated by some of the 14 water companies deciding not to enter the retail market.
This will leave their customers high and dry. Other companies are going the retail route, changing their business name at the same time, and the rest are undecided.
Meanwhile, other opportunities are on the horizon.
In a The Daily Telegraph interview with Cathryn Ross, CEO of Ofwat, about government plans to introduce competition into the domestic market, customers were told it could result in multi-service bundles where water, gas, electricity and telecoms are provided by the same firm.
As far as we know, Utilitywise is the only company actively pursuing this idea. “We hope we can save non-domestic users money and tidy up their bill in all utilities, while ensuring wastage and consumption is reduced,” added Tony.
Although April next year seems a long way off, prices will be available from October this year. So non-domestic users do not need to wait – you can get everything sorted and relax knowing your switch-over is sorted.
Utilitywise plc is the UK's largest Business Energy Consultancy providing cost efficient energy saving services and solutions. With more than 32,000 business customers in the UK and Europe - that makes us the largest.
For information regarding permissions, contact:
3 & 4 Cobalt Park Way,
Cobalt Business Park,
Tel: +44330 303 3303
Website: Utilitywise plc
Utilitywise House, 3 & 4 Cobalt Park Way, Cobalt Business Park, North Tyneside, NE28 9EJ
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Water market deregulation in England here
News-ID: 438956 • Views: 829
More Releases from Utilitywise plc
MAKE YOUR BUILDING SUPER-EFFICIENT WITH A POWER DEC
Public authorities like schools, galleries and leisure centres have to display a DEC. Did you know you can also use it as a powerful tool for improving energy efficiency? Failure to show a valid DEC could result in a £1,500 penalty. Enquire now for a free and receive a free no obligation DEC checking service. Getting efficiency right and effective Business visionary Peter Drucker said: “Efficiency is doing things right; effectiveness is doing
More Releases for Water
water bikes market, global water bikes market, water bikes industry, water bike …
Prominent water bike manufacturers are focussing on product innovations for experience of the consumer and for that, strategic analysis, collaborations and mergers, joint acquisitions, product launched are done by these manufacturers for taking care of their leading positions in the water bikes industry. Key Developments in Water Bikes Industry In January 2020, World’s first hydro e-bike named as Hydrofoiler-XE1 by Manta 5 was launched. The bike doesn’t have wheels and instead it
Bailley Drinking Water – Healthy Water – Safe Water
-Although water covers 70% area of Earth and it is the most necessary element for the survival, yet it is not available in abundance for drinking. Thus, Bailley turns out to be supplying high quality drinking water across India since its launch in 1993. Bailley packaged water is bottled in 52 state-of-the-art plants across India. Targeting various category of consumers & occasions, Bailey Water Bottle is satisfying their needs. There
Global Mobile Water Treatment Systems Market Forecast 2018-2025 GE Water, Evoqua …
Recently added detailed market study "Global Mobile Water Treatment Systems Market" examines the performance of the Mobile Water Treatment Systems market 2018. It encloses an in-depth Research of the Mobile Water Treatment Systems market state and the competitive landscape globally. This report analyzes the potential of Mobile Water Treatment Systems market in the present and the future prospects from various angles in detail. The Global Mobile Water Treatment Systems Market 2018
Global Water Treatment Aerators Market 2018 -GE Water, Tonka Water, RWL Water, L …
Apex Market Reports, recently published a detailed market research study focused on the “Water Treatment Aerators Market” across the global, regional and country level. The report provides 360° analysis of “Water Treatment Aerators Market” from view of manufacturers, regions, product types and end industries. The research report analyses and provides the historical data along with current performance of the global PP Pipe industry, and estimates the future trend of Water
Water Treatment Equipment Market
Water Treatment Equipment refers to the equipment used in the industrial water treatment. It includes Pre-treatment non-membrane, Pre-treatment membrane, ultrapure water, AD/EDI systems polishing, Inorganic WW treatment, Organic WW treatment, etc. The scope of the Report: This report focuses on the Water Treatment Equipment in the United States market, to split the market based on manufacturers, states, type and application. Sample Report Request: https://www.reportsandmarkets.com/sample-request/united-states-water-treatment-equipment-market-to-2022-1622845 Market Segment by Type, covers Pre-treatment non-membrane, Pre-treatment membrane, Ultrapure
Packaged Water in Brazil
ReportsWorldwide has announced the addition of a new report title Packaged Water in Brazil to its growing collection of premium market research reports. Packaged Water in Brazil industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2011-15, and forecast to 2020). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Synopsis: Essential resource