Environment secretary Andrea Leadsom has confirmed that the competitive water retail market for business, charities and public sector customers will open as planned on 1 April 2017.
Government recently completed an assurance process to confirm that appropriate strucutures and preparations had been put in place for the new market and Leadsom said: “It’s great news over a million businesses – be that a car wash, factory or supermarket – will be able to find the best water deal that works for them from 1 April.
“Opening the market is an historic milestone and it’s right this government is giving companies the same choice over their water retailer as they currently have for energy and other services.”
Open Water said this is a “significant milestone” for the programme to introduce non-domestic water competition.
In a note, it added: “Whilst there is still work to do to get us to April, partners are looking ahead to their roles in the new market and how we will continue to work together, and with the industry, to ensure that the market delivers for all eligible customers.”
Ofwat chief executive Cathryn Ross said: “In just a month, we will see the culmination of two years of incredibly hard work by not only Ofwat, Defra and MOSL, but also the water companies. It’s a tremendous result because over a million businesses, charity and public sector customers will be able to choose a water retailer that best serves their needs, or simply negotiate a better deal with their current supplier.
“They can do this with the confidence that there are customer protections in place from day one and knowing that Ofwat will monitor the new market very closely.”
MOSL chief executive Ben Jeffs said: “We are looking forward to the market opening as planned on 1 April. This is a huge achievement by the entire industry, which has worked tirelessly to bring this to reality.
“Next week sees another milestone as we process the first ‘live’ switches in the new system so that customers can be registered with the correct retailer from day one. We are working with our members on the final preparations and, as the market operator, we look forward to supporting the industry as it evolves and adapts to the new competitive dynamic.”
Although many firms are ramping up for market opening, there is speculation in the market that some major incumbents are still to pull out of retail competition.
Most recently, rumours have circulated that Yorkshire Water is planning to sell off its business customer base, despite having invested in the set-up of Three Sixty, a retail brand which the wholesaler had intended would take on all of its existing non-domestic business.