Water

A GUIDE TO BUSINESS WATER DEREGULATION

  • Although most businesses have an electricity supply, some also need to keep their business gas prices to a minimum. We show you how to keep costs low on this essential energy source.
  • Natural gas flames.The market for commercial natural gas supplies is still extremely
    competitive in the UK.
  • As with residential pricing you can opt for choosing dual fuel metered tariffs, although it’s best to get separate quotes also.
  • As with residential pricing you can opt for choosing dual fuel metered tariffs, although it’s best to get separate quotes also.
  • We also provide free energy management software to large customers presenting your consumption data in graphical and data formats.

For a quick quote call our energy customer services team on 0800 690 6008 who have access to all broker-based options. UK suppliers offer fixed priced contracts for between one and three years in length.

  • Our branded “Smart Zoning” allows SME and micro businesses to select the provider that’s most suitable for their circumstances. Larger organizations should consider trialling our unique “group buying” basket prices which are tendered each week. This procurement method could save an additional 10% above any quotes you already have.

Introduction

  • Deregulation of the retail water market in England (excluding Wales and Northern Ireland) for non-residential customers opened on 1st April 2017.
  • The Water Act 2014 received Royal Assent on 14 May 2014 signifying the start of open competition in the commercial water and sewerage market.
  • Now, all 1.2 million UK businesses using this utility can buy their supply from any regulated provider.

Before Deregulation

  • No business using under 5,000 cubic meters of water per year (50,000 m3 in Wales) or households could choose their water supplier.

Results from Scotland

  • The Scottish water market deregulated in April 2008 for business users removing the controls of imposing a nationalised entity. Initially, only the company Business Stream (BStr) operated in the market, but now there are 22 competitors.
  • The incumbent operator provides some impressive statistics on how much money businesses have saved. They’ve estimated Scottish companies have saved over £133 million with £73m from discounts and £54m in efficiencies.
  • Data from the company Open Water report that 50% of business customers in Scotland have renegotiated terms with their current supplier with just 5% that switched providers.
  • Data from the company Open Water report that 50% of business customers in Scotland have renegotiated terms with their current supplier with just 5% that switched providers.
  • The Scottish market has recently seen some real competitive battles leading to far lower costs. Castle Water offer RFU members a 22% discount over standard BStr tariffs. Anglian Water won the contract to supply 100 public sector organisations in Scotland by beating the current BStr rates by £40 million.

Water Prices and Tariffs


The calculations below show the exact charges a small or medium-sized business incurs each year.


The average bills exclude additional charges such as surface water and highway drainage.


The data is from the 2016/17 published tariffs using the lowest annual fixed charges.


All prices exclude
VAT at 20%.

Small Business Prices

Based on 200m3 consumption, sorted by cheapest first

Supplier Water £/m3 Water Fixed Waste £/m3 Waste Fixed Total Bill
01 Thames Water £1.3516 £20.45 £0.8428 £26.48 £3,275.32
02 Northumbrian £1.2195 £41.50 £1.0541 £116.75 £3,489.59
03 Severn Trent £1.5586 £45.59 £0.9400 £23.00 £3,745.99
04 Anglian Water £1.2125 £113.00 £1.4507 £103.00 £4,101.99
05 United Utilities £1.7050 £43.31 £1.1050 £0 £4,175.44
06 Yorkshire Water £1.2875 £23.28 £1.5576 £25.71 £4,199.82
07 Southern Water £1.2510 £33.89 £2.2480 £32.85 £5,146.64
08 Wessex Water £2.1262 £25.00 £1.7512 £19.00 £5,728.76
09 Business Stream £2.1442 £142.91 £2.3982 £138.02 £6,914.67
10 South West £1.9714 £34.08 £3.4518 £40.80 £7,950.80

The difference from highest to lowest are 34.4% or £3,639.35 per year.

Medium-Sized Businesses

Based on 1,500m3 consumption, sorted by cheapest first

Supplier Water £/m3 Water Fixed Waste £/m3 Waste Fixed Total Bill
01 Thames Water £1.3516 £20.45 £0.8428 £26.48 £3,275.32
02 Northumbrian £1.2195 £41.50 £1.0541 £116.75 £3,489.59
03 Severn Trent £1.5586 £45.59 £0.9400 £23.00 £3,745.99
04 Anglian Water £1.2125 £113.00 £1.4507 £103.00 £4,101.99
05 United Utilities £1.7050 £43.31 £1.1050 £0 £4,175.44
06 Yorkshire Water £1.2875 £23.28 £1.5576 £25.71 £4,199.82
07 Southern Water £1.2510 £33.89 £2.2480 £32.85 £5,146.64
08 Wessex Water £2.1262 £25.00 £1.7512 £19.00 £5,728.76
09 Business Stream £2.1442 £142.91 £2.3982 £138.02 £6,914.67
10 South West £1.9714 £34.08 £3.4518 £40.80 £7,950.80

The difference from highest to lowest are 34.4% or £3,639.35 per year.

Benefits of Switching Supplier

  • The overall objective of any market deregulation is to offer consumers a choice from increased competitiveness.
  • Deregulation is the process of removing market constraints which is different from privatisation where shares are privately held rather than by the government.

Lower Prices

  • There are currently substantial differences in the tariffs offered by the leading providers. In theory, the most expensive operator usually reduces prices, with the cheapest increasing them. These pricing differentials are likely to remain because a majority of users will not switch or renegotiate their contracts.
  • Price inertia is prevalent in all industries where the providers know most people won’t do anything to change their position to reduce their bills.
  • Although there’s likely to be some form of marketing communication, the onus is on the company itself to compare prices and switch their expensive contract.

Consolidated Bills

  • One significant change multi-site users will benefit from is the ability to have one supplier administer all of their sites.
  • If a business has 20 stores around the country, they may have 20 different water suppliers.
  • From April they’ll be able to consolidate their fragmented billing into one national agreement.

YOUR WATER QUOTE

FIND OUT IN JUST 60 SECONDS HOW MUCH WE COULD SAVE YOUR BUSINESS!

*
*
*
*
*
*