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Brokers will play a “vital role” in the business water market, by driving awareness and helping organisations benefit from the changes, utility consultancy Inenco has insisted.
In a column for Utility Week, the company’s chief commercial officer David Cockshott said third party intermediaries (TPIs) will “drive engagement not only by improving awareness but also by shifting it into action”. He was writing in response to comments made by Waterscan managing director Neil Pendle, suggesting that brokers have “no place” in the market.
Cockshott said: “TPIs work best in partnership with suppliers, to make sure businesses are well-served, well-informed, and well-placed to benefit from an open market.
“Our relationships and ability to create and support with the delivery of a holistic utilities strategy can only benefit the market in its infancy and as suppliers adapt and evolve in a maturing market to meet business’ needs.
“The success of TPIs in the energy industry can be replicated in the water market, to work for both suppliers and customers alike.”
Utilities Intermediaries Association operations director Rod Sinden said that consumer behaviour will be a “critical component” in how the market will evolve. “The customer will decide whether TPIs, have a role in the market place,” he said. “In making the statement that brokers have no place in the water market, Neil Pendle paints a simplistic picture of a market which is influenced solely by the retailer and motivated by margin.”
He added that, “because the savings are limited and successful businesses are busy businesses, knowledgeable and trusted TPIs will be needed”. “It is a logical step for the customer who uses a TPI for their gas and electricity purchasing to require them to deal with their water purchasing as well. So, whether TPIs wish to enter the market or not, their customers will dictate that they do so by requiring a comprehensive offering.”
Pendle told Utility Week that brokering is “not the option for this particular market”. “I don’t think it’s appropriate, with low margins, that some of that margin goes to a broker,” he said. “Frankly I’m not sure what value they add.”
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