EY - Energy lessons for water

Energy lessons for water

Lessons from the opening of the energy market for water retail competition

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This article first appeared in Utility Week on Friday 17 January 2014.

To better understand how the water retail market could evolve after 2017 we've looked at insights and lessons learnt from the non-domestic energy retail market, and worked with large non-domestic water users to understand what they need and expect from a competitive market.

 

 

Although the Water Act 2003 allows large users in England and Wales to choose their supplier, few have chosen to do so, for two reasons:

  • High threshold (5 megalitres a year) cuts market size to around 2% of non-domestic customers. Many potential customers have a mix of high and low usage sites.
  • Competition currently excludes wastewater services, which make up most of the customer bill.
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