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Utilitywise has claimed the non-domestic water retail market in England is yet to see “significant progress” in switching rates.
Responding to the latest figures released by Market Operator Services Limited (MOSL) last week, the utility consultancy firm suggested Ofwat needs to consider a “new strategy” this year to make the market a success.
Around 3.5 per cent of the 2.7 million supply points in the business water market have switched since market opening.
In its third CEO Quarterly Market Review published on 25 January, MOSL said Q3 saw the largest number of switches, once the pre-market switches were taken into account.
Brendan Flattery, chief executive of Utilitywise, told Utility Week: “Nine months on from water deregulation and we are yet to see any significant progress in the number of businesses switching their water suppliers.
“This set of figures is the latest in a line of disappointing results published by MOSL, showing there is still much work to be done to make the water market truly open.”
He added: “Less than 100,000 businesses have switched since 1 April and switching rates have actually slowed since the first quarter. It is clear that water deregulation has not had the impact that we, or UK businesses, hoped it would and Ofwat must consider a new strategy in 2018 to make it a success.”
MOSL’s figures showed 30,649 switches were processed during October to December 2017. It said a total of 91,960 switches have taken place since the market opened to competition on 1 April last year.
Chris Scoggins, chief executive of MOSL, said: “We are currently running the first market audit, designed to increase confidence in the market by providing independent assurance on trading party compliance, MOSL compliance and on CMOS [central market operating system].
A statement released by Ofwat in response to MOSL’s findings suggested the figures are “promising” but highlighted the regulator will continue to monitor the market.
Emma Kelso, Ofwat’s senior director of customers and casework, said: “Ofwat is continuing to monitor how the market is developing and is in the process of carrying out insight work with businesses across England to find out how the market is working for them.
“With this, we are continuing to work with colleagues across the industry to ensure that the business water market works efficiently and remains fit for the future.”
The Consumer Council for Water said it would like to see a “greater share of small and medium-sized businesses aware of the market and actively engaging in it”.
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