We were pleased to be invited to speak at the Institute of Water and Future Water Association Conference "Water Retail Competition – 6 months on" hosted by WRc at Swindon on 19th October 2017. Jon Wadley, Business Manager at Immerse, outlined the progress made since Deregulation of the Water Retail market since April 2017, from a Supplier's Perspective. He commented on water being the 'forgotten Utility' with competition, usage and costs well understood in the gas and electricity markets, but not in water.
The opening of the non-household water retail market will allow for very small gains to be made by organisations – generally 0.5-1.5%. However significantly more savings can be achieved by reducing water consumption through water saving devices or minimisation/recycling – generally 20-40% and where appropriate developing new/alternate water sources such as boreholes, canals, rivers and lakes – 70-80% and more.
Water retailers have concentrated on the cost savings achievable through bill consolidation to encourage consumers to switch, but those retailers that grasp the much larger savings that can be achieved through water usage reduction will reap larger rewards.
Jon's view is that it isn't about how much you pay per litre of water but the number of litres you use. Those retailers that grasp this concept will gain market share over their competitors. It is clear that 6 months in, although some switching has occurred there is clear evidence that retailers are losing as much as they are gaining.
If retailers can't or won't offer these bigger savings then consumers can turn directly to suppliers like Immerse to deliver quantifiable reductions in their costs.