Brokers split on water switching rates

Intermediaries uncertain what to expect from water business customers

Brokers have expressed differing views on the expected rate of switching amongst business water customers when the market opens in April.

Some say there will be an initial flurry followed by a slowdown, while others believe the market will take a while to take off.

H2O Building Services senior partner Graham Mann told Utility Week the company expects a high level of switching water suppliers and a “steady increase both at market opening and in the future”.

Orchard Energy water services commercial manager Chris Quinn agreed in part, saying he expects an initial high volume of switching in April, which will level out as the market matures.

Inprova Energy water services manager Mike Lee told Utility Week the company expects an initial flurry, but the “very low discounts” that are going to be possible will inevitably limit the extent of switching over the next few years until the next price review by Ofwat.

However, Grand Union Water founder Peter Sceats suggested switching on day one will be limited and the market will “not be at its competitive best” on 1 April. “There’s a good chance that it will be more competitive on 1 September than it is on 1 April for example,” he said.

And Inenco chief commercial officer Dave Cockshott said he expects “very little” switching at market opening. “I think customers will be disappointed with the savings available by switching,” he told Utility Week.

“The exercise of getting their house in order will probably produce benefits far in excess of the benefits they will get by switching.”

He said multi-site customers are likely to switch to simplify their administration processes and “that is where the benefit will be rather than price”.