News

Legal change to let businesses switch water companies

Proposed legislative changes would allow more businesses to choose their water suppier, enabling them to “shop” for the best available deal.

Currently only businesses using more than 50 mega litres of water per year can switch suppliers, the proposed change would see this threshold dramatically reduce to 5 mega litres, increasing the number of eligible businesses in England from 2,200 to 26,000.

The change which is subject to parliamentary approval is an amendment to the proposals to the Water Industry Act 1991, commenting on the proposals Environment Minster Richard Benyon stated ” This change will allow a huge number of extra businesses to search out better water deals by switching supplier if their current supply does not work for them. It also highlights the Governments firm commitment to helping businesses and stimulate the economy”

Ofwat Chief Executive Regina Finn welcomed the proposed changes which she described as “a step in the right direction and good news for qualifying businesses who will welcome greater choice during difficult economic times”

While Dame Yve Buckland chair of the Consumer Council for Water stated “This will be good for many business customers who are currently frustrated by the lack of progress of competition in water. The important thing now is to get the system working for those customers who can now switch and will need to have the confidence that they can easily and seamlessly change supplier”

It is hoped the change will be enacted by the end of the year