News Blog

19 Jan 2015 | Filed under: Business, Water

Mr Moffitt’s Profits Times January Edition

 

The regulator and ministry you need to be paying attention to

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OFWAT is the water regulator in England & Wales and the Department for Environment, Food & Rural Affairs (DEFRA) is the responsible ministry. On 11th December 2014, DEFRA launched a new consultation on Government plans to implement new regulations to enable the water companies in England to exit the non-household retail market when competition opens in 2017.

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   A new way of managing an entire utility

 
 

WATER COMPETITION LOOKS TO FOLLOW SCOTTISH MODEL, BRINGING CHOICE FOR SITES WITH HEAVIER USAGE.

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Business Customers in Scotland have enjoyed choice of supplier since April 2008. The Water Industry Commission in Scotland (WICS) states that the system they facilitate offers ‘better value for money and services that are more tailored to customers’ needs.’ With 130,000 non-household customers, the change has had a huge impact with the public sector alone saving £36 million from their consumption-related water bills between 2010 and 2014.

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WATER COMPETITION COMING TO ENGLAND

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I attended a meeting of the Major Energy Users’ Council (MEUC) on 3rd December where we discussed the water competition due to come to England in April 2017. From October 2016, it is thought that organisations meeting the requirements will be able to set up water contracts to begin the following April.

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It look as though we’ll be following the Scottish Model. In Scotland, the Central Markets Authority (CMA) maintains records of supplier activity in

 

the market and each month they use their data to work out the wholesale charges that suppliers must pay to Scottish Water. Scottish Water continues to deliver water and remove waste but supporting supply companies carry out retail activities such as reading meters, billing and providing customer support.

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WHAT ARE THE REQUIREMENTS?

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Currently, non-household sites in England with an annual consumption of over 5,000m³ can be quoted for. This may be spread across a number of meters as long as they are within the same single site. My experience is that English water companies are only interested in customers with several large supplies > 5,000 m3. Unfortunately for now at least, annual consumption must be over 50,000m³ for Welsh clients.

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Follow @Mr_Kills_Bills for the latest news

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2nd January: RT @auditeluk: Our unique approach to cost management helps #charities throughout the UK to lower the cost of doing business: https://auditel.co.uk/costs-sectors/charities/

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