Early bird will catch the worm ahead of water market reform

Having the right data and systems in place is crucial, look for straightforward accurate billing and a simple switching process.

NEXT year’s change of competition rules in England will allow all businesses, public sector bodies and third sector organisations to switch water providers. This presents a huge opportunity for businesses – initial estimates suggest that the new market could deliver £200 million in benefits to the economy overall. In Scotland, many businesses have already seen the results of the competitive model, which was introduced in 2008. It may have been slow to start - only 2 per cent of companies switched in the first few years – but since then around 50 per cent of the market has switched water supplier. And so the world’s first truly competitive water market was born. Last year, United Utilities Scotland won the water supply contract for 300 Tesco stores and distribution centres in Scotland, saving the retailer more than 20 per cent from its water bills - equating to more than £800,000 per year. For customers this meant improved services and new efficiencies.

Understanding what you need to know to switch

There are a number of lessons to be learnt from this example, and others, about how businesses should tackle making a switch. Tony McHardy, Sales Director at United Utilities, explains: “It may sound obvious, but customers need to know what they want. They need to select a supplier that really understands and matches their business objectives, and has services that add value. “Having the right data and systems in place is crucial, look for straightforward accurate billing and a simple switching process. These should be specified within the contract, so be sure to meticulously check over the detail to avoid any surprises. “Look for a supplier that has experience in the market and an in-depth understanding of it. With roughly 30 players in the water market, do not cast the net too widely as you may waste time. Narrow down your search to suppliers who have a serious interest in what you do.”

Water Plus - United Utilities and Severn Trent joint venture

As the water market gears up for competition, United Utilities and Severn Trent are joining forces to create a new retail business called Water Plus. This new company will bring together the best of both to deliver excellent customer service, great value and new service offerings. It will provide billing, meter readings, account management and water efficiency advice for businesses across the country. But what makes Water Plus different to other water companies? Tony McHardy explains: “We will prioritise our customers though the appointment of account managers and broker managers, to get under the skin of clients’ needs. We will take a segmented approach, allowing us to talk to customers across all markets. This isn’t a one size fits all model, it’s about delivering added value through great service and a deeper engagement with customers.”