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Seven of the nine English water and sewerage companies (WASCs) have confirmed they are preparing to participate in the competitive non-household retail market.
In a straw poll conducted by Utility Week, seven of nine WASCs said they would not exit the retail market when it opens to competition next year. United Utilities refused to comment and Southern Water said it was “undecided”.
Wessex Water confirmed it would operate through existing retailer – Water2Business – with Bristol Water. Anglian Water said Anglian Water Business will be the business arm, and a separate entity from Anglian Water the wholesaler, “as is required by market competition laws”.
Northumbrian Water, Yorkshire Water, South West Water, Southern Water and Severn Trent Water all confirmed that they were preparing to stay in the retail market.
And Thames Water said: “Like other incumbent retailers, we’re working to determine the best way to continue to serve our customers and be ready to succeed when the market opens.”
The market is due to open in April 2017, allowing 1.2 million non-household customers of providers based mainly or wholly in England to choose their supplier of water and wastewater services. It will link with the existing market in Scotland, which opened to business customers in April 2008.
The government introduced retail exit to the Water Act 2014 at the eleventh hour, following an sustained lobbying effort by peers in the House of Lords, regulators and some water companies, who all believed it that the proper functioning of a competitive market required companies to be able to exit if they wished.
Portsmouth Water became the first water company to announce it would withdraw from the non-household market last month, handing its retail activities on to Scottish supplier Castle Water.
Portsmouth will continue to provide retail services to household customers which make up 95 per cent of its customer-base. It said it “fully intends to participate in the household retail market, if it happens”.
When asked by Utility Week, five of the WOCs confirmed they will stay in the non-household retail market when it opens. Only South East Water and Cambridge/South Staffordshire Water refused to comment on their plans.
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