Water industry regulator Ofwat and the water watchdog Consumer Council for Water have both welcomed yesterday’s announcement that the Government is to examine the benefits of providing competition for retail water services to household customers in England.
The Government has asked Ofwat to carry out the review, reporting back next summer. Once complete, it will then be for the Government to decide if and when it wants to give household customers a choice.
Cathryn Ross, Ofwat Chief Executive said:
“Customers’ priorities should be at the heart of water services. Well-functioning markets deliver benefits for customers, as well as wider society. Such a market in the water and wastewater sector could see customers become more engaged, push prices down, service up, and encourage more efficient use of an increasingly stretched resource.”
“Opening up choice is a decision for Government. We welcome the opportunity to report on whether the benefits of choice could or should be extended to households. An in-depth review is needed to understand the full extent of these benefits, as well as identifying the barriers to getting a better deal for customers and making sure all customers’ interests are considered.”
“We look forward to engaging with our stakeholders as we carry out the review.”
Retail services in the water sector include customer facing activities, such as billing, account handling and customer queries, as well as water efficiency advice. They are different to wholesale services, which include the pipes and treatment works required to supply water and take wastewater away.
Tony Smith, CCWater’s Chief Executive, said:
“In research we did some years ago the majority of household customers supported the principle of competition in water and sewerage services. However, when Ofwat conducts its cost-benefits review it will need to look carefully into the reasons why a sizeable minority of household customers, at that time, were less enthusiastic, and how this might be overcome.
“CCWater will work to make sure that customers’ views, as well as the cost-benefits case, shape the Government’s decision on whether it will give household customers a choice of water and sewerage provider.”
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