Severn Trent Costain is giving its full backing to calls in the newly-released Environment, Food and Rural Affairs (EFRA) Committee report on the Water White Paper for the speediest possible introduction of the retail market.
The company is already driving market opening with its retail switching trial this year. It is also already able to provide joined up retail and on-site services to benefit business customers.
Severn Trent Costain Managing Director Wayne Earp said:
‘We welcome the report’s conclusion that the Government should not delay reform because of an over-cautious approach to investor confidence.’
The EFRA report concludes that there should be a period of three years from Royal Assent to a Water Act to opening of the retail market. Mr Earp added:
‘In reality, we believe that it would be possible to open the market even sooner. The benefits to businesses are so significant that we are pressing for the shortest possible period till full retail competition. Severn Trent Costain is already driving the market opening for customers who are eligible to switch today to ensure customers can benefit from competition now, rather than in the future.’
Potential opening dates suggested to the Committee by stakeholders included recommendations for a much longer introductory period, according to the report. Mr Earp said:
‘Competition was introduced in Scotland three years after legislation was introduced, and the evidence suggests that not only did this not cause problems but that there have been substantial benefits.
‘The Scottish public sector is going to save around £20 million over three years from collectively tendering its water and wastewater services, and around 40% of customers have tendered their water contracts, with 60% securing discounts and many receiving new and enhanced services, according to reports.
‘We believe the Scottish experience provides a sufficiently robust template to enable competition to be introduced even sooner in England and Wales. As a company, we see retail competition as a vital aspect of our overall service provision, and we want to ensure our customers can achieve every possible benefit at the first opportunity.’
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