Almost 8 per cent of business water supply points have now switched retailer, according to the latest figures from the market operator MOSL.
The company’s February “Market Focus” newsletter shows there have been 210,732 switches as at the end of January, representing 7.9 per cent of the 2,672,519 supply points in the market. This represents a switching rate of 16 per cent in terms of consumption.
Water Plus and Castle Water gained the highest number of supply points during the month. This was a “notable” change after several months of Business Stream and Everflow occupying these positions.
However, January saw a 1 per cent increase in the number of supply points switched by consumption – and Business Steam retained its position of the highest switching gains by consumption.
Among the remaining retailers in the top five of switching by consumption, SES Business Water overtook Everflow in January. Everflow recently surpassed SESBW in total number of supply points.
MOSL suggests that, while this is just a snapshot of the market dynamics, the divergence of different metrics for market share is “indicative of the increasing variance between retailers in customer targeting and customer offering” and will be “watched over the coming months”.
In its newsletter, the market operator also acknowledges that developments in this market are not the only thing retailers are focusing on.
“Ofwat’s response to PR19 business plans was clearly a significant development for a number of companies in this market,” it reads. “Ofwat has also asked for comments on their work plans for the coming year.
“We will be responding, and very much welcome Ofwat’s clear emphasis on making sure customers are able to enjoy the full benefits of this new market.”