Business Stream, Scotland’s largest provider of water and waste water services, the customer choice being introduced by the Water Bill to the English non-household water market will drive better service, financial savings and force suppliers to be more flexible to customer requirements.

The legislation, published yesterday by the Department for Food, Environment and Rural Affairs (Defra), was welcomed by Business Stream after Defra announced that all non-domestic water customers in England will be able to choose a water and waste water supplier, with a projected economic benefit of £2 billion over the next 30 years.

Previously, only sites which used more than 50 million litres of water annually were permitted to switch. This threshold was then reduced to five million litres at the end of 2011, which only allowed for a market of 28,000 customers out of a potential one million.

Mark Powles, chief executive of Business Stream, commented:

“Our contention was always that customers’ needs should be the driving force behind any market reform. It is encouraging that the Government is bringing forward legislation to allow all non-household customers to reap the benefits of choice by 2017.

“In Scotland, competition has already led to significant cost reduction, as well as consumption and carbon efficiencies – England is a much larger market and it’s encouraging to see the Government has acknowledged the contribution competition could make to the economy.”

The Bill stopped short of forcing regional water companies in England to legally separate into retail and wholesale businesses, but did lay out plans for water regulator Ofwat to police the market to ensure regional water firms don’t make switching more burdensome or costly for customers.

The Efra Select Committee, which scrutinised the draft Water Bill published last summer, also recommended that legislation include provisions for companies to exit the non-domestic retail market. The Government rejected this recommendation.

Mark Powles continued:

“Competition will only work if there’s a level playing field for all retailers, so it’s critical that the Bill is able to ensure a fair and open market in the absence of firm legislation in that area.

“The omission of an exit clause in the Bill is disappointing, since we believe it will lead to a sub-standard customer experience for those organisations whose incumbent retailers lack either the desire or resource to provide a strong service.”

Business Stream is a wholly-owned subsidiary of Scottish Water, formed as an arms-length company with its own board and independent management team. provide a first class service for business customers and respond to the challenge of other established utility companies entering the competitive market in Scotland, which opened on 1 April 2008.