Yorkshire & Humberside businesses could save more than £15m on their water bills

Yorkshire & Humberside businesses could save more than £15m on their water bills

Press Release: 15 May 2017

Yorkshire & Humberside businesses could save more than £15m on their water bills

  • Businesses in Yorkshire & Humberside could collectively save £17m on their water bills
  • Approximately 107,000 businesses in the region now have control over who supplies their water
  • Water market became deregulated on 1st April 2017

Figures released by Utilitywise have revealed that businesses in Yorkshire & Humberside could collectively save as much as £17m on their water bills. This follows deregulation of the water market in England, giving business owners the chance to renegotiate their existing water contracts or look to a new supplier.

Utilitywise, the UK’s leading energy and utilities consultancy, estimates that savings on water tariffs will be around 10%, dependent on region. Around 107,000[1] businesses in Yorkshire & Humberside now have control over who supplies their water, giving the local water market a value of approximately £179m.

In the month following water deregulation on 1st April, Utilitywise has received more than 50,000 business engagements regarding water supply. This represents a 740% increase from the month prior to deregulation, as business owners look to take advantage of potential savings on their water bill in a time of economic uncertainty and rising costs.

The water market in England is now valued at £2bn[2], giving businesses the opportunity to access up to £200m of potential new savings.

While the initial response to water deregulation has been encouraging, there are potentially hundreds of thousands of businesses that are missing out on its benefits. Separate research from Ofwat[3], the industry regulator, and Utilitywise[4] both revealed that less than half of the 1.2 million business responsible for their own water supply were aware that they would soon have a choice of water retailer.

Brendan Flattery, CEO of Utilitywise, said: “We are delighted to see such a high number of enquiries since the water market deregulated, but also believe that more can be done to make businesses aware of its potential benefits. A deregulated market could produce savings of as much as 10%, as well as improved service and greater choice. To compliment this, bundled utilities contracts, such as those offered by Utilitywise, which combine electricity, gas and water, have shown to save businesses up to 10%. Ofwat has a responsibility to ensure that these companies are aware of the water options open to them and to push for greater margins of savings for smaller businesses, like we have seen in Scotland.”

The Scottish Water market deregulated in 2008 with similar low margins. After three years the regulator intervened, widening the retail margin to allow savings of 20%+ for all businesses. Since the intervention, roughly 50% of businesses have switched, which could provide a clear blue print for Ofwat and the English water market.

Andy Poole, specialist water policy advisor for the Federation of Small Businesses, said: “We believe the new water market will bring opportunities for many small businesses to take advantage of the different services and tariffs on offer. Competition should drive up services, standards and trust for small business customers. We encourage businesses to examine what they are being offered by their current supplier and compare it with what others are offering. They should look at price, advice and support, innovation and technology, customer service, combined utilities and other additional services. There’s no need to rush into a new contract you’re not sure about- see what suits you best, before making an informed decision.”

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NOTES TO EDITORS

Contacts:

James Rollinson, Edelman
+44 203 047 2194
James.Rollinson@edelman.com

Laura Nicol, Utilitywise
+44 191 425 8033
Laura.Nicol@utilitywise.com

About Utilitywise:

As one of the UK’s leading independent consultancies, Utilitywise plc (AIM:UTW) is advising 40,000 clients, helping them to get the most value from their energy through better procurement and services that allow them to be more energy efficient.

Having grown from a start-up business in 2006 to managing an effective IPO in 2012, Utilitywise understands the needs and concerns of its small, medium and large customers. It works with clients ranging from South Tyneside Bowls and Social Club and the University of Bradford to FTSE100 BAE Systems and AstraZeneca.

Utilitywise aims to debunk the myths that exist around utilities and support businesses across the UK to spend less time worrying about utilities so they can spend more time running their companies. In 2016 Utilitywise was named an OEM partner by Dell as part of a joint strategy to introduce Internet of Things (IoT) Building Automation solutions to customers.

Utilitywise is a UK company quoted on the AIM market of the London Stock Exchange. For more information, please visit: www.utilitywise.com

[1] Utilitywise Figures
[2] https://www.instituteofwater.org.uk/news-post/englands-2bn-water-market-to-open-to-competition/
[3] https://www.thetimes.co.uk/article/most-firms-unaware-of-cheaper-deals-on-water-0x78bw3hz
[4] https://www.utilitywise.com/2016/11/21/new-water-survey-finds-most-english-businesses-unprepared-for-water-deregulation-in-2017/


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