Ofwat has published its final decision on changes to the retail price caps which apply to smaller business customers (consuming less than 0.5Ml per year) which will see average bills increase by 6.4% before inflation.
The changes will apply to smaller customers who have not engaged in the market, for example, by switching retailers.
On average, across all regions in England, Ofwat's decision will lead to final bills for business customers on a dual (water and wastewater) metered tariff increasing by around 6.4%, before inflation. The regulator said the change in price caps will enable efficient retailers to earn a fair return whilst supporting the long-term stability of the business retail market that will benefit customers.
The proposals only affect business customers, they do not affect household customers. and do not affect the charges levied by the incumbent water companies (e.g.Thames Water).
Ofwat has also decided to simplify the price caps applying to smaller business customers by moving from the existing model of price caps varying on a regional basis, to an England-wide national price cap. This will ensure that price caps are more reflective of the costs to serve smaller business customers, which Ofwat has concluded do not vary on a regional basis.
The new price caps will be introduced from April 2023. To help manage the impact on business customers, Ofwat will transition the introduction of the new price caps over a two-year period, including by limiting annual changes in customers' retail charges to no more £60 per year, before inflation.
Georgina Mills, Business Retail Market Director at Ofwat said:
“Our price caps ensure the business retail market is fair for small businesses that don’t shop around as much as much as larger businesses do. We need to make sure that these caps are at the right level, so that efficient water retailers can cover the costs of supplying their customers and small businesses don’t pay more than they should.
"We have listened to feedback over the consultation period and carefully considered all views. We know that these are challenging economic times but the actions we’re taking today will support stability in the market, while continuing to protect smaller business customers.”
This is the first time Ofwat has done a thorough assessment of business retail costs to serve smaller customers as the current price caps are broadly based on the tariffs set by the incumbent water companies prior to market opening.
The regulator plans to review the price caps again in 3-5 years' time.
Sulzer has launched a new global Center of Excellence (CoE) for Water Treatment Solutions - the CoE consolidates Sulzer’s wastewater treatment expertise in a unified and global manner.
“SAS (Surplus Activated Sludge) is a bit weird and 
Owen Mace has taken over as Director of the British Plastics Federation (BPF) Plastic Pipes Group on the retirement of Caroline Ayres. He was previously Standards and Technical Manager for the group.
PureTec Separations, the Ledbury-based water treatment engineering firm, has appointed Dan Norman as its new Sales Manager – Water Process Systems, supporting the company’s continued growth in the UK and international markets.
Hear how Scottish Water has completed its £235 million Ayrshire Glasgow Resilience Project - customers across Greater Glasgow, Ayrshire and East Renfrewshire will now benefit from a more secure and resilient water supply.
Hear how United Utilities is accelerating its investment to reduce spills from storm overflows across the Northwest.
Find out more about the remarkable career opportunities on offer at WSP - scroll down to watch the inspirational video.