The pace of water switches has slowed, with the latest figures from the market operator showing just 25,010 supply points switched water retailer, in the second quarter since market opening.
This brings the total number of switches since April to 61,311 representing only 2.3 per cent of the 2.7 million supply points in the market.
In its second CEO Quarterly Market Review published today (26 October), MOSL said the number of switches has continued to fluctuate around 1,000-2,000 a week, as in Q1.
Source: MOSL, CEO Quarterly Market Review, 26 October
However, Alan Lovell, chair of the Consumer Council for Water suggested awareness of the market has been increasing since it opened in April.
He told Utility Week: “About 40 per cent of businesses are now aware it exists, which is an astonishingly good number considering it was only about 10 per cent this time last year.”
The report showed retailer gains and losses since market opening and revealed that around 70 per cent of all switches were away from the largest five retailers, while new entrants gained around 35 per cent of the switched supply points.
Of the 61,311 supply point switches, just under 3,260 related to Greene King, which has been granted a self-supply licence.
Prior to market opening, United Utilities and Severn Trent embarked on a joint venture to form Water Plus – the largest business water retailer in the country, which serves more than 350,000 business customers.
So far, it has seen several large business customers make the switch to it, including Tesco (3,433 sites), Sainsbury’s Argos (2,000 sites) and the Co-op (4,200 sites) as well as hotel group, Radisson (40 sites).
A spokesperson from Water Plus, said: “A strong focus on service for our existing customers has meant that we have the lowest percentage customer churn rate (1.5 per cent) in the market and we’ve also switched more sites to Water Plus than any other retailer which is a very positive start for us.”
A statement released by Ofwat in response to MOSL’s findings suggested the data shows a “continued interest” in the business retail water market.
Emma Kelso, Ofwat’s senior director of customers and casework, said it was “promising” to see “continued growth” in the market.
“The fact that we are also seeing a broad range of retailers gaining new supply points and new entrants to the market, is encouraging,” she added.
However, with just over 61,000 supply points having switched, out of a possible 2.7 million supply points, Rupert Redesdale, chief executive of the Water Retail Company argues the actual number of individual customers who have switched is likely to be a “fraction” of the total.
He told Utility Week: “Although SPID changes are being used to show movement in the market, the actual number of individual customers who are switching will be a small fraction of this total.
“Understanding the actual number of customers, especially SMEs, switching will need to be undertaken to show whether deregulation is leading to any significant movement of customers to a new retailer or not.
“It is more likely that the 2.3 per cent of SPID switches equates to less than half a per cent of non-domestic water customers which would not be an indicator of success as yet of deregulation.”