Businesses appear to be dipping their toe rather than diving into the newly competitive water market.
Statistics from market operator MOSL reveal that nearly 9,000 premises made the switch to a different water supplier during the first week of deregulation, which came into effect on April 1.
Deregulation means around 1.2 million businesses, charities and public sector customers can now choose a water retailer, rather than having to buy from their regional provider.
The figures show there is clearly an appetite for a competitive water market and we would expect that appetite to grow and be better served as the market matures.
It is early days and there is a degree of uncertainty on pricing with some suppliers still trying to place themselves in the market and new companies lining up to enter the market which may explain the cautious start.
With the market still very much in its infancy, eligible customers would be well advised to keep abreast of developments and speak to their consultant to reach a decision on the switch that would be best for them.
It has been estimated that switching customers could see around a 14 per cent reduction in their water bills, although early indications suggest that prediction is a longer term goal.
The real gains are still expected to be enjoyed by those with multiple sites across the country who stand to benefit both financially and administratively by consolidating their water supply.
The lack of actively entering the electricity market to source the best deals is said to be losing business £1.7 billion a year across the country. The loss for water would be lower as the national spend is lower, but nonetheless it is important for business not to end up in the same boat and miss out on the savings achievable.
Our experience of working in other deregulated markets such as electricity, gas and telecoms means we are well placed to help businesses analyse their requirements and make savings in terms of what they spend and use.
To find out how we can help you, call us on 024 7699 7901.
Business Development Manager, Utility Team