October 17 Newsletter 13th October 2017
Take Advantage of the Open Water Market
The business water retail market turned three months old at the end of June, and market operator MOSL reported that around 35,000 supply point identification numbers (SPIDs) had been switched to a new retailer – around 1% of the eligible market.
In comparison to other UK utility markets, the rate of switching is encouraging. When the water market in Scotland opened in 2008, the rate of switching was 0.5% in the first year. The UK electricity market opened for small businesses in 1994, yet by 1998 only 1% had switched. Likewise when the telecoms market opened in 1992, it took 6 years for 18% to switch.
- The 1% that have switched have done so for the following reasons:
- Availability of consumption and billing information online
- Portal access to upload meter readings so that bills are based on actual readings
- Improved customer service
- Consolidated billing (one bill to administer instead of numerous)
- Clarity of billing will aid bill validation
- Financial savings
- Centralised independent account management
- Benchmarking to drive a water reduction campaign
The water regulator OFWAT has set the prices for all the wholesale rates for every part of England over the next 3 years. These will be reviewed again in 2020 when we expect the savings to be higher. Since the prices are set, those businesses that haven’t yet switched are simply spending more on water with a lesser service than they could do for the next 3 years.
The future of the water market looks good for business customers’, with savings and improved customer service available. In addition, significant retail savings to the customer are on the agenda for the next price review.
Our advice is to switch water supplier now for current and future benefits. Following your switch in supplier, we will assess the potential for each site to reduce water consumption by benchmarking against the specific industry standard. For more information, please contact us today on 01384 397777.
Current Market Position
Prices have remained fairly steady throughout September as the impact of the French nuclear plant maintenance has settled.
Ongoing maintenance should resolve this in the longer term, but reduced output has put pressure on gas fired power stations to make up the shortfall.
The US oil refineries have started to recover from hurricane Harvey and output is increasing. This has had a softening affect on prices which has been slightly offset by Centrica’s planned closure of Rough storage.
The closure will begin after completion of maintenance on 1st October 17. This has had some affect on winter prices already, but it has not been seen in last months daily prices.