Don’t splash out, switch water supplier!
Small businesses are splashing out on water bills when they could switch water supplier and share in around £200 million worth of savings. Do you want to tap into lower bills? Itâs three months since the water market in England was deregulated, but only a small number of businesses have switched water supplier. On 1 April 2017, eligible small businesses were given the freedom to choose which water supplier to buy their water and wastewater services from based on the best deal. However, take-up has been slow. Since April, just 28,000 switches were made, reports MOSL, market operator of the non-household water market. And thatâs just the number of meters; even fewer business customers have taken the plunge. Steer your way to savings Utilitywise, which has switched 1,000 meters so far, estimates that 1.2 million businesses have not taken the opportunity to share in a pot of savings worth £200 million. Lack of awareness may be one issue. At the end of last year, its new water survey revealed that only one in four businesses felt informed about the legislation or the potential benefits of deregulation. Another factor may be the modest nature of the available savings â around 10%. However, even the smallest saving helps business in these challenging times. Besides, savings are expected to improve in three yearsâ time when industry watchdog Ofwat presides over a reduction in wholesale prices. Other positive water ways Switching water supplier has another benefit apart from lower water tariffs. Businesses with multiple sites can now get one streamlined bill instead of different bills from each water area â much less hassle. There are also other cost-effective ways of dealing with water suppliers. Utilitywise believes multi-utility bundles could also save business owners up to 25% by bundling electricity, gas and water into one contract. It has urged Ofwat to make sure companies are aware of the water options open to them. For further information please contact: welcome@utilitywise.com Manufacturing & Engineering Magazine | The Home of Manufacturing Industry News
English businesses could collectively save up to £200 on their water bills
Businesses in England could collectively save as much as £200m on their water bills Approximately 1.2 million businesses now have control over who supplies their water Water market became deregulated on 1st April 2017 Figures released by Utilitywise have revealed that businesses in England could collectively save up to £200m on their water bills. This follows deregulation of the English water market, giving business owners the chance to renegotiate their existing water contracts or look to a new supplier. Utilitywise, the UKâs leading energy and utilities consultancy, estimates that savings on water tariffs will be around 10%, dependent on region. The water market in England is valued at £2bn[1] and 1.2[2] million businesses now have direct control over who supplies their water. In the month following water deregulation on 1st April, Utilitywise has received more than 50,000 business engagements to the water page of their website regarding water supply. This represents a 740% increase from the month prior to deregulation, as business owners look to take advantage of potential savings on their water bill in a time of economic uncertainty and rising costs. While the initial response to water deregulation has been encouraging, there are potentially hundreds of thousands of businesses that are missing out on its benefits. Separate research from Ofwat[3], the industry regulator, and Utilitywise[4] both revealed that less than half of the 1.2 million business responsible for their own water supply were aware that they would soon have a choice of water retailer. Brendan Flattery, CEO of Utilitywise, said: We are delighted to see such a high number of enquiries since the water market deregulated, but also believe that more can be done to make businesses aware of its potential benefits. While savings of 10% may result in relatively modest reductions for smaller businesses initially, increased competition within the water market will undoubtedly lead to greater savings down the line as well as improved service. To compliment this, bundled utilities contracts, such as those offered by Utilitywise, which combine electricity, gas and water, have shown to save businesses up to 25%. Ofwat has a responsibility to ensure that these companies are aware of the water options open to them and to push for greater margins of savings for smaller businesses, like we have seen in Scotland. The Scottish Water market deregulated in 2008 with similar low margins. After three years the regulator intervened, widening the retail margin to allow savings of 20%+ for all businesses. Since the intervention, roughly 50% of businesses have switched, which could provide a clear blue print for Ofwat and the English water market.
