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Water management consultants predict no significant discounts in the deregulated water retail market

Leading water management consultants H20 Building Services are predicting that there will be no water retail discounts in the deregulated English water retail market anywhere close to those previously available in the Scottish water retail market.

When the water retail market in England opened its door and deregulated their was a high level of expectation, a buzz in the utilities markets as Energy Consultants, Brokers and Utility Management Companies were looking to additional revenue streams as competition in the Gas and Power market increases with more and more energy broker businesses joining a already crowded energy market.

Now 9 months on the buzz is no longer apparent and the realisation that there is little if any profitable revenue to be generated by switching water supplier.

Even with the up and coming 2019 price review (PR19) by the water regulator OFWAT this methodology sets out: –

• Expectations and requirements for water companies preparing their business plans to meet the needs of their customers from 2020 through to 2025 and beyond.

• How these expectations form the basis for the tests that will be used to assess water company business plans.

• The approach OFWAT  will use to intervene in the plans to ensure water companies deliver the changes needed by customers.

• How the assessments will flow through into water companies price limits including their service commitments and the incentive framework.

Take this and pressures of the competitive water market due to water deregulation and the increases in environmental and energy costs the water companies will have an extremely challenging future ahead of them.

As far as water retail discounts go switching water supplier will not produce much in the way of water and waste water unit discounts.

So what does the future hold for business water and waste water bills? 

Bags of water industry innovation, high level water management and “off grid water supplies”

Water management consultants expertise will be in high demand and the water companies will see revenues reduce from here on in as businesses focus on conserving water resources and reducing water and waste water bills all driven by the deregulation water retail market.