Fewer and fewer businesses are switching water supplier – so why is the water retail market slowing down?
The rate at which businesses and organisations are switching water supplier in the English water retail market is slowing according to MOSL who is the water retail market operator of the none residential sector.
MOSL is owned by all of the water wholesale companies and water retailers trading in the water retail market.
MOSL the water market operators statistics are showing 6,874 supply point id’s (SPIDS) switched water supplier during June 2018, compared with May 2018 13,738 and November 2017 when 15,189 switched water supplier.
So why is there such an apparent low level of participation or engagement?
Graham Mann a Water Industry Expert at H20 Building Services views are: Some in the water industry say that the water retail companies should have more value propositions, the truth is we can only take an educated guess but what could be the key issues for customers?
The discount levels for the overall effort of work involved ” what is the point of switching water supplier for 1.5 percent ” playing safe is too much hassle.
Little knowledge of water deregulation coupled with negative feedback in the water market such as incorrect billing, water company overcharging, poor service levels all of which sadly are true.
A general distrust in brokers generally and no transparency in the water market similar to gas and power procurement.
Very little credible independent water expertise and highly skilled water consultants are in short supply.
Waiting until the water retail market matures thereby increase discounts
And finally a general distrust of water companies and water retail companies.
These appear to be the key reasons why most businesses or organisations are not engaging as quickly as some in the industry would like or expect says Mann.
For me this is just fine, customers actions, opinions and requirements matter, it is customers who will dictate how fast or slow they switch water supplier and engage with the water market and it really is about time the market reacted but I see zero innovation, rock bottom customer service, incorrect water bills issued to customers 1,000’s of them!
Some water retailers just plain ignoring complaints, zero transparency of pricing, water market data not fit for purpose.
We have one water consultancy that claims they are independent, then applies for their own water retail licence and does not enter the water retail market at all instead proceeds to sell Water Self Supply contracts almost on a weekly basis and with OFWAT (the water market regulators blessing) as they have reduced the water self supply application fee!
This water consultancy applied for and secured a water retail licence with published accounts at companies house showing very substantial losses year on year with statements such as “The companies Directors have a reasonable expectation that the company will be able to continue operational existence for the foreseeable future” Couple that with the companies own reason for obtaining a water retail licence which was primarily to sell water self supply services and “in order to provide self supply management services the company obtained a retail licence from OFWAT”
So they by their own admission had little or no intention to enter the water retail market but chose instead to use the water market data to aid and secure water self supply contracts.
Why did the water regulator allow a so called independent loss making water consultancy a water retail licence on this basis?
Some water retailers have struggled to get their licence due to credit and other financial challenges ?
A water retail licence is NOT needed to offer water self supply or manage the water self supply process as we can do this at H20 Building Services.
Ask yourself this – what would happen to all those companies and public sector organisations if a water retail company and water self supply facilitator ceased trading? This may well be the nightmare scenario for those on self supply as the billing platform, meter reading and all back office support is administrated by the water retail consultancy firm, all these services would cease!
What happens then, do the water self supply revert to the water retail market by default? Then there are the issues of wholesale payments to untangle. The costs and disruption would be significant to any business or public sector organisation buy hey risk assessments have been completed first right?
That’s the negative and now the positive
So what can be done to inject interest and more customer engagement in the water market and ensure 100 percent independence building trust in water.
Consider this: –
An innovative ground breaking route to water procurement, a secure online water, waste water and trade effluent procurement platform.
Your billing data is uploaded for you, the data will be audited and checked by water industry experts, then you the customer decides the date and time all the water retail companies are sent invitations to pitch for your water retail contract.
The you can view the live supplier tenders, this will increase competition and maximise savings.
When the trader process is complete and all pricing is shown live on screen you have full access to water industry expert support to assist you in the decision making process if needed, when you have made the decision press the green button and the deal is done!
Features and the benefits are: –
An innovative new route for water, waste water and trade effluent procurement.
A live water retail supplier tender process that will increase competition and therefore maximise savings.
Ground breaking technology supported by water industry experts, account management support through the whole process.
Substantially less time consuming for customers reaching out to the whole water retail market resulting in real customer choice and providing a level playing field and opportunities to all water retail companies in the market and not just a select few.
A simple and easy process that gives you the customer instant access and control.
Bringing complete transparency using real time information throughout the process.
To store and keep your water data and water retail contract details in one secure place.
This will bring 100 percent independence and trust into the water market in the UK.
The good news is its on its way in the next few months !!
To register your interest and for more information and to answer any questions you may have email email@example.com