What's happening in the UK water industry?
Recently there have been changes in UK legislation that allow customers to choose their water services supplier in England. Sites in Scotland have had this option for some time but with these new rules the benefits could broaden.
Changes in legislation
In 2008 full retail competition was introduced in Scotland for businesses and public sector organisations. This means that every business and public sector organisation in Scotland is benefiting from increased choice, innovation, customer service and better value for money.
The market has a capped maximum price meaning that customers are protected from price volatity and minimum service standards so all customers can be assured a basic standard of service.
In November 2011 the Ofwat (the English water regulator) changed the rules around switching in England. Now non-household customers will be able to switch their water supplier if they meet the criteria of consuming 5 megalitres at any one site, (which equates to approx £9,000 per site in spend).
They can only switch water supply not waste water, trade effluent or surface water drainage.
This new legislation means that we will be able to serve 26,000 customers in England too.
How does England differ to Scotland?
Essentially England and Scotland are completely different markets with very different rules. In Scotland there is full competition for all businesses and public sector organisations but in England it is restricted to only the largest users and only covers water not waste water.
What next?
The Queen's speech (9 May 2012) outlined a draft Water Bill that will be published to reform the water industry in England and Wales. Why does that mean? In a nutshell, England is going to follow Scotland’s lead in creating a competitive water market for non-household premises.
The announcement follows a White Paper published by Defra (The Department for Environment, Food and Rural Affairs) last year, which included the UK Government’s plans for introducing full competition to all non-domestic customers in England.
It’s really exciting as it puts customers at the heart of water but the timetable for change isn’t understood. However some sites are already able to switch supplier and access the benefits that businesses are seeing in Scotland.
Register your interest in hearing about the changes in market or let us know if you’re interested in switching.
Case study:
Coca–Cola
Business Stream's expertise helps put a cap on Coca–Cola's waste water and trade effluent issues.