Water Contract Negotiation

The English market is set to deregulate as of April 1st 2017. LSI Energy are available to help with all your water needs, please contact a member of our friendly team for assistance.

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Water market deregulation and the arrival of competition

 

You may be aware that the water industry is the last of the public utilities to undergo reform - part of that process is to deregulate the market and open it for competition for non-domestic users. Currently the English market is set to deregulate as of April 1st 2017. Wales and Northern Ireland are not entering the market as yet.

In contrast the Scottish market has been deregulated since 2008 and businesses have been benefiting from the open market. The markets in the south will reflect those of the north however the one major difference being the number of companies within the market. Currently in Scotland there is only one water provider. It is anticipated that there will be upwards of 20 suppliers in the south to begin with. This number will fluctuate over time as some suppliers merge, some exit and some join.

How does it affect you - What does water competition mean for your business?

Competition in the water market will allow businesses to switch their water and wastewater retailer, giving them freedom to find the best supplier to suit their business requirements.

The regulator (Ofwat) is bringing in measures to improve transparency and ensure better outcomes for customers through competition. As part of the de-regulation there will be a separation of wholesale and retail business, enabling an open playing field for water retailers to operate across England.

There are already early indications that two of the largest providers are set to join forces; United Utilities and Severn Trent (this has to be ratified by the CMA). On the other hand Portsmouth Water are the first company to announce their exit from the market and their retail arm is being acquired by Castle Water and independent already operating in the Scottish Market.

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