Following deregulation of the non-domestic water market in Scotland in 2008, England is set to follow suit in April this year when all businesses will be able to choose to switch supplier.

Currently large businesses which consume more than 5 million litres of water a year have some choice in their water supplier, all other businesses are required to use one of the twenty different companies who have regional monopolies to supply water. Consumers have no ability to challenge their supplier to reduce the cost of their water and are unable to switch if the supplier has poor customer service.

Post regulation, rural businesses will be able to choose their water supplier and switch in a similar process to selecting an alternative electricity supplier.  The Government hopes that the deregulation will force suppliers to offer more competitive rates to businesses and improve their customer services. 

Whilst businesses cannot switch supplier until April, they should prepare now by working out their annual consumption (which may be across multiple sites) and consider what their priority would be from a new supplier; is it cost driven or would they prefer one that offers a high standard of customer service?

With increasing pressure on the rural sector as a whole and farm outputs plateauing, many are being forced to review their fixed costs. Deregulation could create a cost saving opportunity for farms and estates.

Wales has decided not to deregulate the industry and so businesses will continue to be supplied by Dwr Cymru (Welsh Water).

For further information contact Tom Heathcote on 07918 628983 or email here