9 July 2007
Many businesses in the UK are failing to benefit from the best water supplier for their particular needs, new research has revealed.
According to a survey by the Consumer Council for Water in conjunction with Ofwat, many business customers have not changed their water supplier to get a better deal, despite the launch of a new competition regime over 18 months ago.
Set up in December 2005, the competition regime was designed to give business users the chance to change supplier in order to reduce their costs.
However, despite the fact that two thirds of customers said they were likely to switch to better a better deal with a new water supplier, no companies in the UK have in fact changed supplier.
One of the main reasons for this is that the competition regime is failing to meet the needs of businesses in terms of price, the survey found.
Deputy Chair of the Consumer Council for Water, Sir James Perowne, said: "Dealing with the issues raised in this research will be a matter for government, sector regulators, and the Consumer Council for Water, working with the water industry.
"There are a number of barriers which are stopping the new regime from working. These need fixing. The market also needs to be bigger with more customers having a choice.
"We need to be clear where the water industry is going in terms of competition and over what time scale. If some customers will not be allowed a choice, it is important that they are not disadvantaged by the extension of the regime."
Around 50% of businesses said they would switch if they found a better service with a new supplier, while over 90% said they would switch if offered lower bills.
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