Ofwat has launched a new consultation on a review of the regulatory safeguards currently in place in the form of price and non-place protections in place for business customers via the Retail Exit Code.
Around 1.2 million business customers in England and Wales can choose the retailer for their water and wastewater services. To protect those business customers who have not engaged in the market, the Retail Exit Code (REC) sets out requirements for price and non-price terms in the default tariffs offered to these customers.
The regulator last reviewed these in 2021-22, with revisions to protections taking effect from April 2023 – at the time Ofwat said it would look to review the REC price and non-price protections again in 3-5 years' time particularly in view of evolving market conditions and the efficacy of current market functioning.
"Noting market developments and changes in the external macro-economy”, Ofwat now thinks it is an appropriate point to review the REC protections, so that any revisions can take effect around 4 years after the last revisions took effect (April 2027).
Ofwat’s State of the Market report 2024/25 and Business Customer insight survey provide updated and additional information regarding the development of the business retail market and the activity and experiences of customers and customer segments.
Summary of key findings
Customer awareness
Over half (52%) of business customers surveyed in the Business Customer Insight Survey in 2025 are aware they can choose their water retailer - compared to 48% in 2022 - with awareness significantly higher among larger size businesses with the highest water consumption level. Large customers (250+ employees) and Medium customers (50-250 employees) have similar awareness levels at 78% and 76% respectively.
Distinction in awareness level is not as pronounced by water consumption level. The highest consumption customers (Group Three customers; >50ML) have the highest level of awareness at 59%; similar to businesses who consume between 0.05ML and 0.5ML (Group Two customers).
Ofwat says the Customer Insight Survey suggests that customer engagement and activity in the market is broadly stable and comparable to recent years. Around 3% of businesses switched in the last 12 months and 4% renegotiated, which is also consistent with data from market operator MOSL on the number of Supply Point Identifier (SPID)s switched which has remained around 3% per year since 2020/21.
InJuly 2025 Ofwat published a consultation on its REC review setting out its initial thoughts on its approach to the review - since then the regulator has carried out further work and research including customer research commissioned in collaboration with CCW regarding business customers experiences and views of the business retail market.
Ofwat published the research results in its Business Customer Insight Survey 2025.and also separately collated data on market evolution and developments into its State of the Market update for 2024/25.
Via this latest consultation Ofwat is inviting stakeholder views and now seeking to understand whether the new information and data presented in two publications has influenced stakeholder perspectives on the REC review, including regarding whether views already submitted in response to the July 2025 consultation may have been changed or altered as a result.
Ofwat is seeking views and evidence from all interested stakeholders on the following consultation questions:
Consultation question 1: In light of the new evidence presented in the State of the Market 2024/25 report and the Business Customer Insight 2025, have your views changed in any way since responding to our July consultation? If so, please explain what has changed and why.
Consultation question 2: To what extent, if any, do you believe the new evidence should influence the scope of price and non-price protections? If so, please provide details on how it should do so and explain why?
Email responses should be sent to This e-mail address is being protected from spambots. You need JavaScript enabled to view it with the subject “REC26 review November 2025 consultation”.Alternatively written responses may be posted marked ”Review of the Retail Exit Code – November 2025 Consultation response” to:
Ofwat, Centre City Tower, 7 Hill Street, Birmingham B5 4UA (or 11 Westferry Circus, Canary Wharf, London E14 4HD).
Closing date for this consultation is 5pm on Monday 8 December 2025. The regulator expects to consult on more specific proposals in the spring/summer of 2026.
Click here to access the consultation paper and related documents
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.