Water Deregulation: Top 5 Benefits For Businesses
From next April, there will be non-domestic water deregulation in England. All firms, no matter what their usage, will be able to choose who bills them for company water and sewage services.
As the infrastructure won’t change, when the news was announced you probably asked advisers “do you know how water deregulation will affect my business?”
To answer that, here’s our guide to the top 5 business water deregulation benefits:
1. Lower bills with water deregulation
When regional monopolies end, the likes of Thames Water and United Utilities will have to compete for contracts. Wholesale prices will be fixed for three years, but once new tariffs are allowed, offers of cheaper bills are sure to follow. As a result, customers may get access to competitive prices.
Promotional deals to entice new customers, financial incentives for existing customers to remain loyal, and discounts for efficiency measures are all ways deregulation will save on business water costs.
2. One supplier for multiple sites
Currently, the vast majority of businesses with premises in different regions use multiple suppliers, but from April, all firms will be able to have just one contract.
This will streamline the administration process and should make suppliers keen to attract companies with sites across the country.
3. Better customer service
According to the Consumer Council for Water (CCW), one of the main criticisms of water suppliers concerns customer service. Business users say account management needs to be improved when it comes to clarity, accuracy and bill consolidation for multiple metres.
Poor customer service costs time and money. But an open market means suppliers will need to up their game or lose customers.
Non-domestic users have complained that suppliers are lacking technological innovation. Deregulation should prompt a race to advance, which could include the use of sensor data to allow early detection of problems. Prevention rather than cure will help you save on company water costs.
5. Bespoke service
Experts predict competition will encourage business water suppliers to offer added value packages, which are tailored to the individual user.
It could be assistance to meet corporate social responsibilities, such as a reduction of waste and water consumption. Or for some businesses, a timely billing cycle might be the priority.
There will, of course, be water deregulation disadvantages. They include a lack of service history for new suppliers, and a flurry of time-consuming sales pitches.
It’s also important to note that although Scottish business water is already deregulated, there will not be full UK water deregulation: Wales and Northern Ireland will maintain the status quo.
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