Members of the Major Energy Users’ Council which represents the UK’s large utility consumers are calling for the ability for multi-site businesses to switch to a single supplier from day one when the new competitive market opens in 2017.

The call comes in a Water Manifesto issued by MEUC which says its members are unanimous in wanting to be able to obtain competitive water supply quotes and potentially to switch all their sites to a single supplier and benefit from consolidated and improved billing.

MEUC says this means that all incumbent water companies must be ready to engage with the market as wholesalers, regardless of their retail intentions, commenting: 

"Our biggest concern is that we could be left with supply or administrative problems should the switching process or market arrangements fail. Nearly half of us will be deterred from participating in the market if this risk materialises. We need assurance that switching will be smooth and the market will work."

The Manifesto is the outcome of research conducted in February 2015 on behalf of the MEUC Water Competition Action Group to survey members’ views on retail water market opening. The manifesto is based on the views of those who responded – 22% of member organisations.

The MEUC members’  top consumer protection priority is that their price and service terms will not suffer if their existing supplier exits the market and they are then transferred to a new licensee.

The Manifesto is calling for involvement in market decisions and to be kept informed on developments to ensure that the market works for them.

Respondents were unanimous in wanting the ability to obtain competitive quotes for water and wastewater services and potentially to switch supplier. Key outcomes they want to see when the new market opens include:

• 42% said the most important potential benefit of retail competition to members was the opportunity to obtain a cheaper price per unit of water
• (followed by 21% said the opportunity to better manage/reduce their water consumption was the most important benefit
• 71% said it was important that the market opened on time in April 2017.
• 46% said enabling multi-site customers to switch to a single supplier from day one was the most desirable feature of the new market.

Members expressed frustration at the limitations and administrative complexity of existing billing arrangements. 21% said the ability to compare prices simply and easily was the most desirable feature.

MEUC members expressed a wide range of concerns about the new market. The top concern shared by the largest proportion (25%) of members was that switching could “go wrong” and lead to supply or administrative problems. The second largest proportion (17%) said their top concern was that market activity would be limited/good deals won’t emerge. 46% said they would be deterred from considering switching or trying to get a better deal if these concerns materialised.

Karma Ockenden, chair of the MEUC’s Water Competition Action Group, said:

“Large users, particularly multi-site businesses, are frustrated by the limitations and administrative complexity of existing charging and billing arrangements, which vary from company to company. There is a strong desire for simplification and rationalisation through a single supplier arrangement.”

The MEUC, together with selected members and partners, presented the Water Competition Manifesto to water minister Dan Rogerson MP at a private meeting in Westminster last week. It will now circulate the manifesto to political groups and other interested parties. Membership of the Water Competition Action Group is open to any MEUC member, and aims to represent members’ interests as the water market develops.

Business Stream, the company set up by Scottish Water which is currently Scotland’s largest provider of non-domestic water and waste water services, has welcomed the MEUC Manifesto.

Jo Dow, the new chief executive at Business Stream who took up her position in February commented:

"This is a clear message to the market and regulators that the competitive water market in England will only work if it is truly customer focused. We echo these sentiments and support the members in this call to action.

"We will continue to champion our customers and their needs, and we know from experience that a product, service or market can only succeed if it puts customers at the heart of it. We’re proud to be the largest supplier in the world’s first de-regulated water market and we’ll continue to use that experience to benefit customers."