Domestic water competition is logical

Domestic water competition is logical, and there is no reason why the market should not be free in the same way as energy.

Speaking to Utility Week, SES Business Water managing director Giuseppe Di Vita said he did not see any reason why the domestic market shouldn’t open, despite negligible customer savings suggested by Ofwat in its cost-benefit review.

Di Vita said he fully agrees with the idea of liberalised markets, and said the benefits were about more than just price. He added that there is often too much focus on the commodity – water or energy – but there should also be a focus on the quality of service and the level of innovation a competitive market would drive.

In the summer, SES Business Water obtained a licence to extend its service offering to Scotland, where a competitive market environment already operates. Di Vita said the company is using Scotland “as a build-up to the opening of the English market”.

He also said he felt the shadow market was going well and, despite a few teething problems, the market looks on track to open on time. The water industry has taken many learnings from energy, he said.