The GMB Congress Conference has dismissed “notions of a ¯market for water for households as irrelevant” and called on “all concerned to recognise that water is a natural monopoly.”

New research suggests that 38% of consumers would instantly review their water supplier if and when the domestic market opens to competition, while 48% would consider a single supplier for gas, electric and water if it reduced their overall bill costs.

The Department for Environment Food and Rural Affairs (DEFRA) has said that water industry regulator Ofwat needs to work with Government to build the evidence base for extending competition to the household water retail market before Ministers make the decision on whether to proceed.

The opening of the water market to competition could see entry by energy firms and potentially create the need for a multi-utility regulator, according to a major thought leadership paper published by Gemserv.

The Consumer Council for Water (CCWater) has warned today that customers will end up disappointed if household water competition goes ahead based on an overly optimistic review by Ofwat.

Ofwat has said that the introduction of household competition in the water sector could deliver up to £3 billion in benefits to customers –and the regulator is calling for the government to take an early decision on the issue.

A report prepared by PwC for water watchdog CCWater has said that consumer protection is not the primary concern of the Government's Open Water programme led by Defra, Ofwat and MOSL, the market operator currently putting the final arrangements for the non-household retail sector in place.

Ofwat has today published its preliminary assessment of the costs and benefits of extending retail competition to household water customers – the research says customers would look to save an average of 25% for them to switch, a level of saving which the regulator said “is unlikely to be available.”

Water industry regulator Ofwat has launched a new consultation on credit arrangements between wholesalers and retailers for the new business retail market which opens for competition in April 2017.

New research suggests that the impact of introducing household retail competition in the water sector could lead to pressure on existing cross-subsidies provided by incumbent companies to more vulnerable customers, if more higher margin households switch suppliers.