News Blog

18 Dec 2016 | Filed under: Cost Management, Deregulation, Doing business, Water

2017 agenda: Water Deregulation

Two features of doing business today are constant change, and an ever more complicated set of choices to be made. Tricky, isn’t it?

This adds to the burden of management, bringing a raft of annoying small decisions that can affect the operations and profitability of the company but don’t directly contribute to its development, let alone revenue.

For example, in April 2017 the existing regional water supply monopolies in England and Wales will be dismantled. Water will become a deregulated utility, much like electricity (dereg: 1998) and gas (dereg: 1996). The market will be split into wholesale and retail arms, and as a business, you will now have to choose your own Water Retailer and Waste Water Treatment Supplier.

Suppliers will now be selling fixed-term supply contracts. There will undoubtedly be small but immediate cost savings to be made (we think around 3% will be typical), but also there will be better billing, admin and usage platforms which will contribute to longer-term efficiencies. And the industry is promising consolidated billing for multi-site businesses, the chance to combine suppliers for customers with sites across different regions and better support for water management.

So how are you going to choose from the suppliers and brokers who are now starting to tout for your business? It looks like it’ll be hard to compare tariffs. Some companies will publish straight tariffs. Others will have a price list, but will offer discounts for volume; some will quote as an uplift on the wholesale price of water. And multiple supplies or sites will present their own opportunities and pitfalls.

At Auditel, we have a proven record of helping customers save money through the deregulation of the electricity, gas and telecoms markets. We’ll be tracking supplier offerings as well as prices, and by co-ordinated tenders and expert analysis we can help identify the best deals for you.

So if you want to avoid wasting time on small decisions that earn you nothing, do get in touch.

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