As 2016 disappears over the horizon, it’s hard to imagine that the year that now stretches in front of us could rival the dramatic events of the past 12 months.
But for those of us involved in the water sector, 2017 has the potential to be a year of even greater significance.
We are about to enter a period of change that has not been witnessed in the sector since privatisation more than 25 years ago. The opening of the retail water market in England from April will transform the landscape of the industry, giving 1.2 million non-household customers the power to negotiate a better deal or switch retailer for the very first time.
For the market to be a success the vast majority of eligible non-household customers need to be aware of the changes and the opportunities it presents. That’s why we’ve been working tirelessly behind the scenes to forge strong relationships with representative organisations, including the National Farmers’ Union and British Chambers of Commerce, to ensure their members are up to speed with the changes. The recently launched national awareness campaign by the Open Water partnership will also play a crucial role in ensuring we see businesses of all sizes delving into the market and exercising their right to choose.
Change inevitably brings challenges and CCWater is gearing up to closely monitor the market, ahead of a potential rise in complaints from non-household customers. The extent of this increase will depend largely on how well retailers perform and engage with wholesalers, especially when it comes to resolving operational issues.
Customers will not tolerate companies who try to pass the buck with a complaint, and neither will CCWater. We will be monitoring the complaints we receive closely to identify any systemic problems and ensure market operator MOSL, Ofwat and retailers take swift action to put things right.
The progress and impact of the non-household market will also give us the opportunity to see how small businesses engage with competition. How they behave will provide a valuable insight for government as it contemplates whether to pursue household retail competition in England.
As we move into the second half of the year our thoughts will turn increasingly to the 2019 Price Review, which is likely to dominate our workload over the next three years. We need to hit the ground running as we look to build on the strong foundations of the last price-setting process, which was unrivalled in terms of customer representation. Our initial task will be to influence the development of Ofwat’s methodology for PR19 so it is focused on consumers’ priorities. This will help to ensure the regulator’s decisions on prices, investment and levels of service are rooted in what consumers want and expect to receive.
Through our involvement in Customer Challenge Groups we’ll also want to see water companies working towards a long-term strategy that can meet the challenges posed by a growing population, climate change and the need to protect our environment. Our focus will be on making sure customers get a safe, reliable service now and in the long term.
Delivering resilient and affordable services now and for future generations is absolutely essential. The choices and plans the industry makes in the coming year can go a long way to securing that goal.