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Castle Water THE WATER REPORT THE CUSTOMER GUIDE TO THE NEW WATER MARKET 2017 CONTENTS THE xxxxxxx THE BASICS WATER THE WORLD IS CHANGING – WILL YOU? REPORT WILL I DEFINITELY BE AFFECTED AND AM I ELIGIBLE TO SWITCH? WHAT ARE MY OPTIONS? CUSTOMER PROTECTION CHOOSING A SUPPLIER SUPPLIER DIRECTORY Associated retailers Suppliers from the Scottish market New retailers HOW DO I SWITCH? WHERE TO FIND MORE INFORMATION THE WATER ABOUT THIS GUIDE REPORT The Water Report is a high quality pointers on specialist publication that has tracked how to tell one THE every twist and turn of the development retailer from of water switching for businesses. another, given CUSTOMER We have produced this guide to customers will explain to customers in clear terms what have never GUIDE changes are being introduced from 1 come across April 2017 and how they can expect to many of them TO THE NEW be affected. before. WATER MARKET But in addition to the basic facts, we In summary, have used our independence and we hope 1 expertise to offer customers something these pages of a helping hand as they go about offer customers a discerning and making choices in the new market. We comprehensive one-stop-shop of useful appraise what the market has to offer; information. And that this guide will suggest practical hints to consider (look help steer them towards making water out for our TWR Tips); and provide some choices that are right for them. THE BASICS If you are a non-household water customer retailers – for instance, one for water and in England – that is, a business, charity, one for wastewater services; or different public sector or not-for-profit organisation retailers for different geographical areas of any size or type (with a few exceptions) you work in. – you will be able to decide who sells you water, wastewater and drainage services Household customers are not affected from 1 April 2017. at all by these developments. That’s a change because, up until now, all WhY IS ThiS HAPPENING? businesses except for very large water users The government believes being able to have had to buy their water from the local shop around for retail water services will monopoly company. From April onwards, give businesses the opportunity to get a these local monopoly companies will better deal. Among the possible benefits continue to source, treat and pipe water are: to your premises, and to carry away your wastewater for treatment and disposal Price savings (these are called “wholesale” services). But you will be able to choose who you deal Better billing – more accurate bills; with for “retail” services – that means: who more timely bills; and for businesses with reads your meter, who issues your bill, who more than one site, the opportunity to you pay, and who you raise any queries or reduce the headache of managing issues with. Most businesses will likely find Rather than having a direct relationship they can get the best deal with your local water company, retailers and have the least hassle if will sit between you and that company, TWR they choose a single supplier. like this (see diagram). However if you have lots of sites, TIP you may want to compare You can choose a single retailer to how different retailers perform provide all the services you use, even by selecting two or three for a if you have sites in different parts of short contract term initially. England. Or you can choose multiple BEFORE APRIL 2017 Local water company providing all water and Business waste services customer AFTER APRIL 2017 Local water company Retailer of the providing ‘wholesale’ water customer’s Business and wastewater services choice customer multiple bills by getting a consolidated The Welsh Government has opted not bill from a single retailer. to extend the new market to Wales, so most customers in Wales won’t be able Better customer service. For instance, if to switch. you want to manage all your water needs online, you could switch to a supplier that Most customers say price provides an online portal or app. savings are their biggest motivator in switching. Reduced water consumption. A TWR Straightforward price cuts number of retailers plan to offer won’t be deep in this market. water efficiency services such as leak TIP For one thing wholesale detection, water auditing, consumption prices are regulated and benchmarking and rainwater harvesting. will make up over 90% of the This could help reduce your energy bills typical bill. For another, the and carbon production too. profit margins retailers are allowed to make are small WhAT ABOUT BUSINESSES/MY and there is not much room SITES IN OTHER PARTS OF THE UK? for them to manoeuvre (these margins are capped by The changes only apply to business the water regulator, Ofwat, customers in England. That’s because: at an average 2.5% net). If you want to make more Scottish business customers have been substantial cost savings, you able to choose their water retailer in this should think about finding a way since 2008. Arrangements are in retailer that will help you cut place to enable the Scottish and English your consumption. Use less, markets to work together. pay less. Northern Ireland is unaffected. HOW IS ThiS POSSibLE? To give customers a choice of retailer, business retail arm of a water company each local water company has had from elsewhere in the country; a retailer to split off the part of its operation that experienced in other sectors that has looks after retail services for business opted to add water to its portfolio; or a customers. This is a very small part of start-up company created specifically to what they do and includes, for instance, compete in this new market. the call centres businesses reach when Devoid of its business retail functions, they phone their water company, and the local monopoly company the account managers larger business will be left providing “wholesale” customers deal with day to day. water and wastewater services to From April, these retail services will be business customers. These are all the open to competition, which means “engineering” type elements: sourcing, customers will be able to decide whether treating and piping water and collecting, to stay with (the now standalone business treating and disposing of wastewater. retail operations of) their old company or They will however also continue to to select a new retailer – for instance, the provide retail services to households. THE WORLD IS CHANGING – WILL YOU? You may be thinking that water supply is not top 1 of your priority list; that Local monopoly water com- you can sit tight and panies aren’t being forced to nothing will change for take part in the newly competi- you. Maybe you are tive market – they can opt out en- \ reasonably satisfied tirely and sell their business custom- with your existing water ers to a third party. Three companies company, as many have so far gone down this route. If you are a Thames Water, Portsmouth 2 businesses are. All the other lo- But be advised that the Water or Southern Water custom- er, you will automatically be cal water compa- changes being introduced nies plan to compete affect all water companies, switched to a brand new supplier. in the new market. How- and that even if you do ever, because they have nothing, your experience as split off their business retail ser- a customer will be different vices into standalone operations, after April. There are a many have new leadership teams; number of reasons why new staff with skill sets more geared this is so. to a competitive market; new business strategies; and in some cases, new bill- Late last ing systems (some of which have never year, the been used at scale before). Some of government these retail operations have joined said 97% of busi- forces, merging with like-minded ness customers will 3 companies. Many have The way be transferred to a rebranded, so even their your bills are new retailer before very names are unfa- calculated is fun- the market even miliar. damentally chang- opens. ing. You will pay the full amount to your retailer. They will retain a proportion to cover the costs they incur 4 in providing retail services and a You will no longer have small margin. The rest will be passed routine direct access to on to the wholesaler(s) to cover the your local water company. services they provide (these typically In all but a few circumstances account for over 90% of your bill). All – namely, emergencies – your these transactions will pass through a retailer will be responsible for raising central market, which will be operated your requests/queries/problems with by an organisation called MOSL. the wholesaler on your behalf. For These rules apply even if you instance, if your business expands “stick” with the separated re- and needs a new premises con- tail operation of your local nected, you will need to raise water company. that request via your retailer. WILL I DEFINITELY BE AFFECTED AND AM I ELIGIBLE TO SWITCH? If you are classed as an eligible business, all these changes will affect you. The vast majority of non-household customers are eligible – the intention is to give a choice to all, regardless of size or type. And for most, establishing eligibility will be simple: if the principle use of the premises is not as a household – a factory, school or office, for instance – it is in the market. (A single supply point defines the extent of each premises. So a premises could be one property supplied via a single supply point, or a number of properties – for instance on a private network – supplied via a single supply point).
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