The UK’s leading energy and utilities consultancy, Utilitywise, has called on the new Secretary of State for Department for Environment, Food & Rural Affairs (DEFRA), Michael Gove, to put customers first and make the water market truly open and honest.
The comments come in the wake of what Utiliwise describes as “disappointing first quarter switching figures” published today by Market Operator Services Ltd (MOSL) for the first quarter of 2017/18 following deregulation.
The figures show that 36,301 supply points have switched water retailer since the business market opened – just 1.4% of the 2.6 million supply points that make up the market.
However, according to analysis from Utilitywise, less than 1% of businesses have switched water supplier - 20,998 of the switches relate to sewerage points and 15,303 have been water point switches. As small businesses often have two meter points, Utilitywise is suggesting that the number of businesses who have switched water supplier since 1st April is less than 1%.
The consultancy is now calling on Michael Gove to release the figure for the number of businesses who have switched water supplier since deregulation, as a true measure of its success.
Last month, CEO of Utilitywise, Brendan Flattery, wrote to Michael Gove to outline the consultancy’s three-point plan to make the water market truly open, honest and competitive.
Utilitywise has said that today’s disappointing figures further strengthen the case for Ofwat to be given the authority by DEFRA to hold water suppliers to account.
Brendan Flattery commented:
“The water market deregulated on 1st April, but we have learnt today that less than 1% of businesses have switched water supplier, showing that the water market is still not truly open. The regulator, Ofwat, has not been given the authority to enforce policies which would result in better deals for customers.
“We’ve all been taken for an ‘April Fool’ with the promise of a competitive and open water market, and that’s why we’re calling on Michael Gove to take action.”
“Our three-point plan will make the water market truly open, honest and competitive, unlocking £200 million worth of collective savings for businesses across England.
“Our proposals aren’t rocket science or costly, but simple measures such as publishing standardised pricing models so that businesses can compare different water contracts and find the best deal for them. Currently, businesses have to individually contact more than 20 water suppliers– an arduous task for business owners trying to reduce their bills.
Michael Gove must "empower Ofwat with the strength and authority to fight for small businesses, whilst releasing the figure for the number of businesses who have switched water supplier in the first quarter,” he added.
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