The rate of switching in the water retail market has dropped to almost its lowest level since the market opened, MOSL has revealed.
The market operator’s figures show that 6,874 supply points switched retailer in June 2018, the smallest number since May 2017, when 5,758 supply points switched.
Months with the highest proportion of supply point switches were June 2017 (13,738) and November 2017 (15,189).
This low level of engagement could suggest customers are losing interest in the market, and water retail expert Alan Munro asked on LinkedIn if the slowdown in switching will encourage water retailers to “develop more compelling value propositions”.
Switching figures reached the 100,000 milestone within the first 10 months of the market’s operation and generally continued at a steady pace throughout the first year.
In a recent interview with Utility Week, Richard Stanbrook, director of water retailer Pennon Water Services said the level of switching in the first year of the market was “good”.
“In numbers it looks bigger than the percentage. I think it’s been a steady growth. If you bear in mind when the Scottish market opened in comparison, I think it will start to increase,” he said.
“People will start to differentiate themselves more and customers will start going ‘I want to go to this one [retailer] for this reason’. I can’t criticise that.”
Asked if he thought referring to switches in terms of supply points was jargon used by the sector, he said: “I would agree it should be number of businesses or customers. The jargon doesn’t impact on the service customers receive – it more affects the publicity of the market.”