Customers should drive the creation of a new competitive water market in England, according to Mark Powles, chief executive of Business Stream, Scotland’s largest provider of non-domestic water and waste water services.

The Draft Water Bill published yesterday by the Department for Environment, Food and Rural Affairs (Defra) outlines the Government’s plans for a competitive Anglo-Scottish water market for non-household customers, aimed at improving service, pricing and innovation across the sector.

Business Stream, which supplies more than 93,000 customers in Scotland, is preparing to enter the English market once it opens to competition, but said any reform should be driven by customers.

Mark Powles said:

“The Scottish experience has shown competition, in the right market framework, can deliver demonstrable benefits to customers of all sizes. The non-household market in England is significantly larger with the associated benefits to customers that could bring.

“Defra has recommended a steering group of customers and market participants will help ensure an effective market is created, and from our experience in Scotland that’s something we’d strongly support.

However, Mr Powles warned that though the steps to market reform should have a timetable, a carefully planned move to an open retail market is essential.

“The will to introduce competition is evident, and we believe market participants must be required to deliver against timescales which meet the needs of customers,” he said.

“However, while we are keen to see the market opening as soon as possible, we recognise that pragmatism and rigour are critical to ensure a fully-functioning market which is able to provide long-term benefits to customers.”