TWO utilities firm have announced a new partnership in readiness for reforms which allow business customers to choose their water suppliers.

Wessex Water, which supplied homes and businesses in Hampshire, and Bristol Water have teamed up to form water2business ahead of the changes which come into force in April 2017.

Business customers will be able choose their water supplier unrestricted by region – but experts in the industry have warned that a lack of awareness and understanding could also leave some businesses at risk.

David Seymour, head of business development for water2business, said: “The Water Act 2014 will give companies across the region better access to a greater number of water and sewerage services, as well as more freedom of choice about how to meet their individual needs.

“This provides an ideal opportunity to take stock now and seek advice from experts who will be able to help identify any problems or unnecessary expenditure such as leaky taps, poor pipe maintenance and inappropriate tariffs – all of which can be done by carrying out a simple audit.

“It often surprises people to learn that the average company in the region spends between one and two per cent of its annual turnover on water and that a water audit can identify solutions leading up to 40 per cent in cost savings.

“Certainly from our perspective we’ve been working to ensure that all of our clients are aware of what is ahead and supporting them to put in place plans to ensure that there is minimal disruption, maximum business continuity and cost savings wherever possible. Those yet to put the wheels in motion might want to start considering what options are available and start benchmarking current water usage and expenditure.”

The reforms aim to:

  • Enable all business, charity and public sector customers in England to switch their water and sewerage supplier
  • Establish a cross-border arrangement with Scotland
  • Enabling businesses to provide new sources of water or sewerage treatment services
  • Develop a national water supply network by making it easier for water companies to buy and sell water from each other
  • Enable owners of small-scale water storage to sell excess water into the public supply
  • Enable ministers to set the level to which a water company needs to plan to cope with droughts
  • Enable developers and new water or sewage companies to connect new building developments to the water mains and sewerage system
  • Improve the regulations relating to merger of water sewage undertakers
  • Provide Ofwat a new over-arching duty to take greater account of long-term resilience and changes to improve Ofwat’s regulation of the water industry.

Earlier this year Scotland’s biggest non-domestic water supplier Business Stream bought the non-domestic customer base of Southern Water. This created the third biggest firm in the UK non-domestic market for water and waste water services, with a combined market share of over 10 per cent.

A number of Southern Water’s account managers will be transferring to Business Stream as part of the acquisition. From April 1, 2017 around 1.2 million businesses and public bodies in England will be able to choose their water supplier, an option only currently available to the largest users. Scotland created the world’s first non-domestic water market in 2008.