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As another water retail company becomes a utility broker is the water industry now dysfunctional?
Since the water retail market opened its doors last year the water consultancy industry was given a boost as water, waste water and trade effluent costs were placed under the spotlight by businesses and public sector organisations.
That’s a good thing, as businesses and public sector organisations reduce costs and its also good news for the environment and sustainability.
However the dust is starting to settle in the water market and the stark reality is the margins are just not enough to sustain a water retail business.
The energy brokers realise that the SME market delivers meager commission back from the water retailer so now what?
The water retail market is changing as breakneck speed as water retail companies are now effectively becoming unity brokers and consultants
Consider this, 3rd April 2017 literally 2 days after the water retail market opens Anglian Water Business sign an agreement with Energy supplier Corona Energy offering a consultancy and supply of water, gas and power.
Is this not a utilities brokers and consultancy?
The only yesterday we announced that Water Plus now offers the same type of deal and it looks like with the same energy supplier Corona Energy.
So only one year into water deregulation 2 major water retail companies now offer the same services as the many energy brokers and consultants that are supplying them with water retail business!
Were these actions kick started by low margins?
Or indeed was this the water industry plan from day one?
How is this a competitive market for consumers as gas and power deals are set up with one sole supplier?
Low water retail margins are being propped up by gas and power broker commissions, is this good for customers?
Perhaps we should blame OFWAT for the low margins ?
Who is next we wonder, for instance what about the large gas and power firms obtaining a water retail licence? That happened months ago Yu Energy have a water retail licence trading as Yu Water and of course Regent Gas trading as Regent Utilities they too have a water retail licence.
There is no doubt the utilities market is in turmoil with those that are in it trying to formulate their business plans in an attempt to figure out where to best place their business.
It is really a sad state of affairs that the water retailers are becoming effectively brokers.
Instead they should live up to their promises to deliver excellent customer service, sort out their water billing issues and focus on the water industry in all its forms.
Either way the water audit experts H20 Building Services will never become a multi utilities broker, the focus always has and always will be innovation in water with a strong sustainability message.
We deliver on our promises, perhaps the water retailers should do the same and strive for excellence.