Over half of SMEs ‘unaware’ of water competition

More than half of small businesses in England are still unaware that they can switch water supplier, research by SES Business Water has revealed.

Of the businesses which took part in the survey, 59 per cent reported that they were unaware of English businesses’ freedom to switch water supplier.

Additionally, just 6 per cent of those whose business has an office in England said their business had switched supplier since the market opened in April 2017.

The research found regional differences in awareness and switching activity, with small businesses in the East of England most aware (53 per cent), although only 1 per cent had actually switched.

Small businesses in the North East and North West, East Midlands and South East were the most likely to switch (11 per cent, 10 per cent and 9 per cent respectively).

Awareness was also relatively high for businesses in these regions – 45 per cent for the North East, North West and the East Midlands, and 36 per cent for the South East.

Meanwhile, awareness was lowest in the West Midlands and London (35 per cent), and only 5 per cent and 6 per cent (respectively) of small businesses in these areas have switched.

In February, the Consumer Council for Water warned the water industry to “step up” its efforts to engage with customers to ensure awareness of the non-domestic retail market among small businesses does not “stagnate”.

Research by the consumer group at the time had found less than 38 per cent of small and medium-sized businesses (SMEs) in England realise they can switch supplier.

More recently, Ofwat released figures suggesting awareness has risen. The regulator said 89 per cent of large businesses and 48 per cent of micro businesses are now aware. However, this is a figure which some market players are concerned is still not high enough.