Speaking at a media briefing in London, Ross said: “Retailers will fail. There will be people who are operating as retailers in the market who, ultimately, do not have a viable business model and who exit. That’s normal, that’s what happens in competitive markets.”
She said the important thing is to make sure that, if that they do, customers are protected and do not “lose out” in terms of money or service. “We’ve got measures in place to ensure that that happens,” Ross added.
On 12 January, the regulator set out its plans for monitoring the business retail market, vowing to keep a close eye on retailers when the market opens in April, and “take action” against any form of misconduct.
Ross reiterated these comments, saying: “If we have retailers who are mis-selling to or misleading customers, if they are not treating customers fairly, we need to come down on them like a tonne of bricks, because that is not only an issue for that retailers with its customers, it is an issue that could undermine trust in the entire market. We would take that very seriously.”
Ross was speaking at a briefing to discuss the publication of new research from Ofwat which showed that only one-third of eligible business customers are aware of the changes happening in the water market.
The industry has funded an awareness campaign, aimed primarily at small- to medium-sized businesses, which will launch next week.