Currently, only non-residential customers can switch water suppliers. Domestic customers cannot change their water supplier, meaning who your water supplier depends on which UK region you live in. To learn how to switch business water supplier, follow the link to the Utility Bidder website.
Back in 2002, the UK government said that it would not introduce any legislation to allow residential customers to switch water suppliers. However, in 2015, Ofwat— the water industry regulator— was asked by the government to assess opening up the water market to freer competition.
Ofwat’s assessment in 2016 concluded that residential customers being able to switch water suppliers would result in a net benefit. The report also said that 56% of people believed that the ability to switch water suppliers would be a good thing.
In April 2017, the water market was opened up to allow businesses, charities, and other public organisations to be able to find the best deals for their water and sewerage services.
The new water market is split between wholesalers and retailers. A water wholesaler is one of the main water and sewerage companies that have a regional monopoly in a particular area of the UK. These wholesalers sell to water retailers, who have the ability to package new deals and compete with one another on a regulated market.
Unlike with the wholesaler water companies and domestic customers, businesses are free to choose who they want to provide their water services to, regardless of whether they are in the same region or not.
It might seem a bit odd being able to change water suppliers, afterall, it’s just water and sewerage services. However, there are many reasons why a competitive market for water is a good idea for businesses. A new water supplier could offer better cost-efficient deals, better customer service, and specially catered service for your business needs.
Even though the water market is now much freer for businesses, there are still some eligibility criteria that need to be met to be able to switch water suppliers. This all depends on how your property is designated.
The main criteria for being able to change water suppliers is that the property in question has the primary use as business premises. The property must be used mainly as the place for your commercial activities.
Ofwat provides guidelines on the eligibility for changing water suppliers. We’ve broken down those guidelines to help you get a quick idea of the criteria.
The main properties that are not permitted to switch water suppliers are those that are permanent and living accommodations. This mainly covers all residential properties, and also the following:
- Household premises with management companies – as these are used primarily for living accommodation.
Local authority housing – since these are providing residential housing, they are not eligible to switch water suppliers.
