Water is one of the most essential resources for any business. Yet, until recently, business owners had little choice when it came to their water supplier. The water market was a monopoly, with local water companies holding exclusive rights to supply and retail services in their regions. However, this all changed with the introduction of the open water market in 2017, which brought competition and choice to the forefront. But what exactly is the open water market, and how can it benefit your business?

Understanding the open water market

The open water market is a deregulated system that allows you to choose your business water supplier, like how you can select your energy providers. This market was introduced in England in April 2017, following the success of a similar model in Scotland, which opened its water market to competition in 2008. The goal of the open water market is to increase competition, drive down prices, and improve the quality of service for businesses.

How does the open water market work?

In the open water market, the roles of wholesalers and retailers are clearly separated. Here’s how it works:

Wholesalers: These are the companies that own and manage the water infrastructure, such as pipes and treatment plants. They are responsible for the physical delivery of water to your premises and the removal and treatment of wastewater.

Retailers: These are the companies that you deal with directly. They buy water and wastewater services from wholesalers and sell them to businesses like yours. Retailers handle billing, customer service, and any additional services they offer, such as water efficiency advice or advanced metering.

Benefits of the open water market for businesses

The open water market offers several advantages that can benefit your business:

• With multiple retailers competing for your business, you can negotiate rates.
• Competition encourages retailers to differentiate themselves through customer service. This means you can expect better support, quicker response times, and additional services tailored to your business needs.
• Retailers often provide tailored services such as water efficiency audits, advanced leak detection, and water-saving technologies. These solutions can help you reduce water usage, lower your bills, and improve your business’s environmental footprint.
• If your business operates across multiple sites, you can choose a single retailer to manage all your water services, simplifying billing and administration.
• You have the freedom to choose a retailer that best meets your business needs. If you’re not satisfied with your current provider, you can switch to another one offering better terms or services.

Key considerations when choosing a water retailer

Before diving into the open water market, it’s essential to consider the following:

• Make sure to compare the total value offered by different retailers, not just the price.
• Investigate the service levels of potential retailers. Look for customer reviews and testimonials to gauge their reliability and responsiveness.
• Be mindful of contract lengths and any potential exit fees. Some contracts may offer lower prices but lock you in an extended period.
• Consider what additional services are offered. Water efficiency advice, smart metering, and consolidated billing can add significant value beyond basic water supply.

How to switch suppliers

Switching suppliers in the water market is a straightforward process but involves several steps that can be time consuming when trying to operate a business. That’s why we recommend working with us to identify the best-fit retailer for your water needs. We can research and compare retailers on your behalf, negotiate contract terms and handle the switching process including notifying your current supplier. Making the transition as seamless as possible with no disruption to your water supply.

Want to know more about how we can help your business buy water?

Download our ‘Business guide to buying water’ ebook below.