Business Water Deregulation in England: What It Means for You
Andi Jacobson
Marketing Team
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Most businesses in England can choose which company manages their water account.
This has been the case since the business water retail market opened in April 2017, but many organisations still stay with the retailer assigned to their premises without reviewing their options.
Business water deregulation gives eligible businesses, charities and public sector organisations the freedom to compare retailers, negotiate a new agreement or switch to a service that better suits them.
Here is what that means in practice.
What is business water deregulation?
Before April 2017, most businesses in England received their water retail services from their regional water company.
The market changed to give eligible organisations more choice over the retailer responsible for services such as:
- Billing and payments
• Meter readings
• Customer support
• Account management
• Water efficiency advice
• Managing changes to business premises
The regional company responsible for physically supplying your water is known as the wholesaler. Your wholesaler maintains the network, supplies the water and manages wastewater services.
Your retailer deals with your account.
Switching retailer does not change where your water comes from or interrupt your supply.
Can your business switch water retailer?
Most businesses, charities and public sector organisations in England can choose their water and wastewater retailer.
Eligibility normally depends on whether the premises are mainly used for business and whether they are served by a wholesaler based mainly in England.
Businesses with several locations should check each premises separately. Organisations that pay for water through a landlord or service charge may not be able to choose their retailer directly.
You can use the official Open Water eligibility guide to check your premises.
Different rules apply in Wales, where a premises normally needs to use more than 50 million litres of water each year to choose its water retailer.
Why should you review your water retailer?
Switching is not only about finding a lower price.
A suitable retailer may also help your business improve:
Billing accuracy
Regular meter readings can reduce estimated bills and make it easier to understand what your business is actually using.
Customer support
Slow responses and unresolved billing issues can take valuable time away from running your business. Retailers compete on service as well as price.
Management of multiple sites
Businesses with several premises may be able to bring eligible sites together under one retailer, creating a clearer and more consistent approach to billing.
Water efficiency
Better consumption data can help identify leaks, unusual usage and opportunities to reduce waste.
Pozitive Water supports businesses with water and wastewater services, account management and practical help understanding consumption across individual and multiple sites.
How do you switch business water retailer?
Switching usually involves five simple steps.
1. Review your latest bill
Check your current charges, annual consumption and Supply Point Identification number, also known as a SPID.
2. Check your agreement
Look for any contract end date, notice period or renewal terms.
3. Compare retailers
Review the full service, not only the headline price. Consider billing, meter readings, support, contract length and any extra fees.
4. Agree your new contract
Once you have chosen a retailer, they will usually manage the transfer.
5. Check your closing and opening bills
Make sure the final reading from your previous retailer matches the opening reading used by the new one.
According to Open Water, switching should take no more than one month once you have made your choice. There is no market charge for switching and your water supply will not be interrupted.
You can read the official Open Water switching guide for further information.
What should you compare?
Before signing a new agreement, ask:
- Is the pricing clearly explained?
- How often will the meter be read?
- How are estimated bills corrected?
- What customer support is available?
- Can several sites be managed together?
- Does the retailer provide water efficiency support?
- How long is the contract?
- Are there any additional charges?
The cheapest quote may not provide the best value if inaccurate billing or poor support creates more work for your business.
Take control of your business water
Business water deregulation gives you the right to review your options rather than simply accepting your current arrangement.
Pozitive Water is a licensed business water retailer, regulated by Ofwat and trusted by more than 5,000 businesses across over 16,000 supply points.
Whether you manage one premises or a large property portfolio, our team can help you understand your current account and explore a more suitable arrangement.
Speak to Pozitive Water about your business water.
Frequently asked questions
Can a small business switch water retailer?
Most small businesses in England can switch, provided their premises meet the eligibility rules.
Will switching affect my water supply?
No. Your regional wholesaler will continue supplying the same water through the same network.
Can domestic customers switch water retailer?
No. The open retail market currently applies to eligible business and other non household premises.
Do I need a broker to switch?
No. You can approach licensed retailers directly or choose to use a broker.