Research published today by Ofwat shows that only one-third of businesses are currently aware they can switch supplier, but just over 50 per cent of those surveyed said they would consider switching as soon as the market opens.
Organisations in the construction, retail, financial and insurance and public administration and defence sectors were significantly less likely to be aware of upcoming changes to the water retail market.
The survey also found that most participants would prefer to renegotiate with their existing water and wastewater suppliers in an attempt to reduce costs while “maintaining a familiar and satisfactory level of service”.
The industry has funded an awareness campaign, aimed primarily at small- to medium-sized businesses, which will launch next week.
Ofwat chief executive Cathryn Ross said market opening is “a real opportunity” for customers, “but first they need to know more about the new market. Then they can use that knowledge to make an informed choice”.
She added: “It’s for these reasons Ofwat is working with partners and the water sector to launch an important awareness campaign next week.”
Chief executive of the Consumer Council for Water, Tony Smith, said that, although awareness appears to be “heading in the right direction”, the job is not done, as two-thirds of customers are still “oblivious to the changes”.
“With less than three months to go, our challenge to the industry is to ensure the majority of customers in England know about the new market,” he said. “We want to see a vibrant marketplace where customers are well-informed about the choices they can make.”
Water UK chief executive Michael Roberts said: “Water companies have worked very hard to prepare for market opening and have played a key role in getting the whole sector ready. The survey suggests that both awareness among customers is increasing and that there is more to do to inform each part of the market. Our aim for the campaign is to encourage smaller businesses to find out more about the choices that they will have.”